MONTREAL, Nov. 18, 2019 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (SJ.TO) (“Stella-Jones” or the “Company”) today issued a statement in response to Cabot Microelectronics Corporation’s news release of yesterday’s date announcing their intention to cease future investment in the wood treatment business and not to construct a new pentachlorophenol (“Penta”) production facility to replace operations in Matamoros, Mexico and Tuscaloosa, Alabama when they cease production, estimated to be at the end of 2021.
“We have been acutely aware of Penta supply issues for quite some time and have been taking active steps to be ready to produce preservative under our own direction. Our team has capitalized on our exceptional internal expertise and has been working diligently both in R&D and testing so that we can be in a position to seek regulatory approvals and licenses and have the necessary infrastructure ready on time for the changes that are coming. Additionally, our robust network is well positioned to offer alternative preservatives that are suitable and approved for the treatment of wood utility poles throughout North America. That, in addition to our ample strategic reserve of Penta and assurances from our supplier of continued supply for the next 25 months, further solidifies our intention of continuing to grow our position in the utility pole market by supplying our customers with safe, sound and reliable products,” stated Eric Vachon, President and Chief Executive Officer.
Stella-Jones Inc. (SJ.TO) is a leading producer and marketer of pressure treated wood products. The Company supplies North America’s railroad operators with railway ties and timbers, and the continent’s electrical utilities and telecommunication companies with utility poles. Stella-Jones also manufactures and distributes residential lumber and accessories to retailers for outdoor applications, as well as industrial products for construction and marine applications. The Company’s common shares are listed on the Toronto Stock Exchange.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, the ability of the Company to raise the capital required for acquisitions, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
|Contacts:||Éric Vachon, CPA, CA||Pierre Boucher, CPA, CMA|
|President and Chief Executive Officer |
|Jennifer McCaughey, CFA |
|Tel.: (514) 940-3903||Tel.: (514) 731-0000|