Pioneer Announces Decision Not to Resume Chlor-Alkali Production at Its Tacoma Plant
24 March 2004 - 6:14AM
PR Newswire (US)
Pioneer Announces Decision Not to Resume Chlor-Alkali Production at
Its Tacoma Plant HOUSTON, March 23 /PRNewswire-FirstCall/ --
Pioneer Companies, Inc. (BULLETIN BOARD: PONR) today reported that
it has decided not to resume chlor-alkali production at its Tacoma,
Washington chlor-alkali plant, which was idled in March 2002. In
2003 Pioneer had indicated that production operations would be
resumed at the site if arrangements could be made for the supply of
power for use by the plant in its electrolytic process, and if
Pioneer could establish a suitable customer base for the plant's
chlor-alkali products. Michael McGovern, Pioneer's President and
Chief Executive Officer, stated, "Representatives of Tacoma Power
and other local and state government officials were very supportive
of our efforts to find a way to resume operations at the Tacoma
plant. We were able to reach agreement with Tacoma Power on the
terms of the necessary power contract, and the state government
afforded our chlor-alkali production process some important tax
relief. We knew that the Tacoma area offers the skilled workforce
that we would need at the facility. However, despite a vigorous
effort we were not able to identify and develop the significant
long-term market base that would be served by the Tacoma plant."
Pioneer will continue to use the Tacoma plant site as a terminal to
serve its customers in the Pacific Northwest. Pioneer will also
continue to produce bleach and repackage chlorine at a separate
facility in Tacoma. Pioneer, based in Houston, manufactures
chlorine, caustic soda, bleach, hydrochloric acid and related
products used in a variety of applications, including water
treatment, plastics, pulp and paper, detergents, agricultural
chemicals, pharmaceuticals and medical disinfectants. Pioneer owns
and operates four chlor-alkali plants and several downstream
manufacturing facilities in the United States and Canada. Certain
statements in this news release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act.
Forward- looking statements relate to matters that are not
historical facts. Such statements involve risks and uncertainties,
including, but not limited to, the risks and uncertainties
described in Pioneer's filings with the Securities and Exchange
Commission. Actual outcomes may vary materially from those
indicated by the forward-looking statements. DATASOURCE: Pioneer
Companies, Inc. CONTACT: Gary Pittman of Pioneer Companies, Inc.,
+1-713-570-3200 Web site: http://www.piona.com/
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