Chemtrade Logistics Income Fund (TSX: CHE.UN) warned a work stoppage at Canadian Pacific Kansas City Ltd (CPKC) and Canadian National Railway (CNR), including the preparations for such work stoppage, could have a material negative impact on Chemtrade’s business results. The unprecedented concurrent work stoppage started on Thursday August 22, 2024 halting movement of all shipments on those railways. In preparation, shipments of certain chemicals, such as liquid chlorine were halted by the railways in advance of today’s work stoppage. Chemtrade, its suppliers, and customers rely on rail service for the movement of raw materials and finished goods. The exact impact on Chemtrade’s business will depend on the duration of the work stoppage and the length of time for rail service to normalize once it ends. Due to the complexity of the rail network and the uncertainty of the duration of the work stoppage, it is not possible to reliably estimate the impact to Chemtrade’s business results at this time.
About Chemtrade
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America’s largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is also the largest producer of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.