Canexus Income Fund
TSX : CUS.UN

Canexus Income Fund

November 06, 2006 23:59 ET

Canexus Files Permit Application for a Proposed Technology Conversion Project

VANCOUVER--(CCNMatthews - Nov. 6) - Canexus Income Fund (TSX: CUS.UN) announced today that one of its operating subsidiaries has filed application for permit with the Vancouver Port Authority (VPA) for a technology conversion project, to modernize its manufacturing plant on the north shore of the Vancouver harbour.

"This application is another step in the process before the project can be considered for approval by our board of directors. The project is being driven by a growing market demand for lower-cost, higher-quality chemicals," said Gary Kubera, President and Chief Executive Officer. "We expect to be able to deliver significant environmental benefits with the new processing system.

"Converting to state-of-the-art membrane technology will result in a superior product at lower cost. We expect to reduce greenhouse gas emissions by over 80 per cent in the first year of operation, reduce energy consumption and completely eliminate asbestos from our process," Kubera said.

The conversion project is subject to the VPA's integrated project and environmental review process, including public consultation. If a final decision is made to proceed, Canexus could launch construction in late 2007 with completion in 2009.

"This project would be a significant investment in the port's industrial community and a clear expression of confidence in the long-term future of both the Port of Vancouver and the economy of British Columbia," said Captain Gordon Houston, President and Chief Executive Officer of the Vancouver Port Authority.

As part of the consultations with local residents and business community Canexus will be hosting an open house, November 23, 2006, from 3 to 8 p.m. PT, at the Holiday Inn on 700 Old Lillooet Road in North Vancouver. Information is also available at www.canexusproject.com.

In 2007, Canexus will be celebrating its 50th anniversary as an integral part of the port's waterfront industrial community, supplying a variety of chemicals to industries in British Columbia, Alberta and the southwestern United States. Since the plant was built in 1957 it has played an important role in British Columbia's economy. Canexus is a key supplier of chemicals that are used to purify municipal drinking water, including the Greater Vancouver Regional District water supply. Nearly two-thirds of the chlorine produced at the plant is used to treat drinking water or is repackaged for use in swimming pools and other applications where purified water is required such as the manufacture of pharmaceuticals or plastics. B.C.'s forest industry also relies heavily on products manufactured at the plant.

The Port of Vancouver is Canada's largest and most diversified port, trading more than $43 billion in goods with more than 90 trading economies annually.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Canexus' five plants in Canada and one plant in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus targets opportunities to maximize unitholder returns and delivers high-quality products to its customers. Canexus is listed on the Toronto Stock Exchange under the symbol CUS.UN. More information about Canexus is available at www.canexus.ca.

Contact Information

  • Gary Kubera
    President and CEO
    Canexus Limited
    (403) 571-7300
    or
    Richard McLellan
    CFO
    Canexus Limited
    (403) 571-7300