News | June 27, 2005

Cal-Chlor Announces New East Coast Calcium Chloride Packaging Facility

Ludington, MI - Cal-Chlor Corporation will be opening a new packaging and distribution facility in New Jersey to serve customers who buy calcium chloride products from The Dow Chemical Company. This new operation is the result of a long-term packaging and service agreement recently formed between the two companies to meet the increasing demand for Dow's calcium chloride products on the East Coast.

The facility will be located within the Bound Brook site of Union Carbide Corporation (UCC), a wholly-owned subsidiary of Dow; UCC is leasing space at the site to Cal-Chlor. Cal-Chlor Corporation will be building and operating the new calcium chloride packaging and warehousing facility scheduled to be operational August 1, 2005.

"We are delighted with this new agreement between Dow and Cal-Chlor. As our sales of PELADOW*, DOWFLAKE*, and COMBOTHERM* calcium chloride products continue to grow on the East Coast, we see the development of local packaging and terminalization as increasingly critical elements in servicing our customers," said Bill Berrett, general manager for Dow's calcium chloride business. "Not only does this initiative lower our current cost-to-serve, it places a large amount of inventory directly into the market where it is consumed. As a result, we are better able to create alliances with our distributors and support their continued success with selling deicers in this region."

-more-

Executives at Cal-Chlor Corporation agree that the new site will provide the East Coast calcium chloride market with many benefits. "This is an important milestone for Cal-Chlor Corporation," said Mark Hanna, President and CEO. "We are doubling our packaging capacity in North America and leveraging our existing, successful relationship with Dow."

"What's more, our new packaging plant is located in an ideal location to serve the metropolitan areas of New York, Philadelphia, Baltimore, Washington, and Boston. We fully expect this new capability will open doors for growth across our entire customer base," added Hanna.

The decision to use to the UCC site is a testament to those who recognized its potential early on, and have invested in its revitalization. "We see their choice to open this new operation here as an endorsement of the hard work many of our employees have put forth on this project," said Brian Maurer, UCC Site Leader for Bound Brook.

SOURCE: Cal-Chlor Corporation