CANADIAN OCCIDENTAL PETROLEUM LTD., ON BEHALF OF CANADIANOXY CHEMICALS, ANNOUNCES SUSPENSION OF CHLOR-ALKALI PRODUCTION
CANADIAN OCCIDENTAL PETROLEUM LTD., ON BEHALF OF CANADIANOXY
CHEMICALS, ANNOUNCES SUSPENSION OF CHLOR-ALKALI PRODUCTION
SQUAMISH, British Columbia, Nov. 5 /PRNewswire/ - Canadian Occidental Petroleum Ltd. (AMEX, Toronto, Montreal: CXY), on behalf of CanadianOxy Chemicals, announced today suspension of operations at Squamish, involving discontinuation of chlor-alkali production. Approximately 70 CanadianOxy and contract employees will be affected. The Squamish sodium chlorate facility is not affected by this decision.
In making the announcement today, Tom Sugalski, senior vice president, chemicals, acknowledged the valuable contribution the plant employees have made to the Squamish chlor-alkali operation. "We could not have asked more of these people. They worked very hard with us in an attempt to keep the operation viable. It is with real regret that this action is necessary," he said.
"This is an extremely difficult decision for CanadianOxy to make. We know our decision is going to have a major impact on our employees and the Squamish community. We have plans to assist all of our affected employees and we will work with each of them and their union representatives to help them market their job skills and find other employment."
This move is necessitated by the shrinking domestic market for chlorine. CanadianOxy responded to the decline by securing export markets. That alternative has become uneconomical and consequently, necessitated this decision. CanadianOxy has invested millions of dollars in capital in the Squamish plant since acquiring the facility 5 1/2 years ago. The company has been committed to making the plant a viable and environmentally secure operation. In addition, CanadianOxy has commenced detailed engineering studies to evaluate alternative technologies and other commercial options which could be incorporated at this site, at some future time. These studies will require up to 12 months before conclusive findings can be drawn.
Canadian Occidental Petroleum Ltd. is a publicly traded, diversified energy and chemicals company participating in oil and gas operations in Canada, the United States, South America, the North Sea, Republic of Yemen, Papua New Guinea and Pakistan. It holds interests in both the Syncrude plant and the Oslo oil sands project in northern Alberta and operates industrial chemical plants in both central and western Canada. The company's headquarters is in Calgary, Alberta.
/CONTACT: John S. McKay of Canadian Occidental Petroleum Ltd., 403-234-8700/
(CXY.) CO: Canadian Occidental Petroleum Ltd. ST: British Columbia IN: OIL SU: KJ -- LA020 -- 1343 11/05/91 14:53 EST