Compass Minerals International, Inc. to Expand Its Magnesium Chloride Capacity.OVERLAND PARK, Kan. -- The board of directors of Compass Minerals International, Inc. (NYSE NYSE See: New York Stock Exchange : CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information ) has approved plans to expand the company's magnesium chloride magnesium chloride Warning - High-alert drug! Chloromag, Mag 64, Mag Delay, Slo-Mag Pharmacologic class: Mineral Therapeutic class: production facility in Ogden, Utah, and to install a new mill at the company's Goderich, Ontario, rock salt mine. The plans call for Compass to increase its capital investments by $5 million in 2005 and $14 million in 2006. "The expansion of our magnesium chloride plant will allow us to take advantage of what we believe are increasingly favorable market conditions in the industry," remarked Michael E. Ducey, president and chief executive officer of Compass Minerals International. "Both projects provide opportunities to reduce production costs in the short term and provide the flexibility to accommodate growth in the long term." Compass will invest $12 million over the next two years to expand its magnesium chloride evaporation ponds at the Great Salt Lake, upgrade its production facility and add rail infrastructure. The investment is expected to increase the company's capacity to produce liquid magnesium chloride by 70 percent and to double its capacity to produce crystallized crys·tal·lize also crys·tal·ize v. crys·tal·lized also crys·tal·ized, crys·tal·liz·ing also crys·tal·iz·ing, crys·tal·liz·es also crys·tal·iz·es v.tr. 1. magnesium chloride by midyear 2006. In liquid form, magnesium chloride is used for highway deicing De-icing is the process of removing ice from a surface. Anti-icing is the process of preventing ice from forming on a surface. Deicing can be accomplished by mechanical methods (scraping), through the application of heat, by use of chemicals designed to lower and for dust control in rural locations and on construction sites. Crystallized magnesium chloride is used as a premium consumer deicer de·ic·er n. 1. A device used on an aircraft to keep the wings and propeller free from ice or to remove ice after it has formed. 2. A compound, such as ethylene glycol, used to prevent the formation of ice, as on windshields. and in selected industrial applications. Compass Minerals is the leading producer in North America and generated approximately $20 million in revenues from magnesium chloride in 2004. The remaining funds approved by the board will be invested over the next two years in a high-capacity mill at Compass's Goderich, Ontario, rock salt mine. Milling is the process whereby rock salt is crushed to its customary size and impurities are removed. The new, state-of-the-art equipment is expected to reduce the cost of production, maintenance and energy at the mine and will allow the facility greater flexibility to manage production processes. It is expected to be operational by mid-year 2006. About Compass Minerals International Based in the Kansas City metropolitan area, Compass is the second-leading salt producer in North America and the largest in the United Kingdom. The company operates nine production facilities, including the largest rock salt mine in the world in Goderich, Ontario. The company's product lines include salt for highway deicing, consumer deicing, water conditioning, consumer and industrial food preparation, agriculture and industrial applications. In addition, Compass is North America's leading producer of sulfate sulfate, chemical compound containing the sulfate (SO4) radical. Sulfates are salts or esters of sulfuric acid, H2SO4, formed by replacing one or both of the hydrogens with a metal (e.g., sodium) or a radical (e.g., ammonium or ethyl). of potash, which is used in the production of specialty fertilizers for high-value crops and turf. This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the Company's current expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially. The differences could be caused by a number of factors including those factors identified in Compass Minerals International's annual report on form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on March 16, 2005. The Company will not update any forward-looking statements made in this press release to reflect future events or developments. |
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