Low-cost, sustainable chemical and terminal operations

Capital Investment Opportunities:

Multi-phase NATO expansion

Brandon power line upgrade and potential expansion

North Vancouver
hydrochloric acid expansion

Continued Brazil investment

Selective expansion into
new products and markets

Strategic Growth

Canexus has a proven track record of growth and a strong portfolio of opportunities. In the past 5 years, we have invested more than $500 million to grow and improve our assets – which for a company our size is significant.

We made these investments because they are critical to being a leader in what are mature industries. They position us to take advantage of improving markets, sustain our low-cost advantages and help us expand into other growth opportunities.

Recent Investments Yield Incremental Cash Flow

2010 was a year of significant investment, which we are now starting to realize the benefits from. We undertook six growth projects, the largest of which was a technology conversion project at our North Vancouver chlor-alkali plant, which made us the regional low-cost leader. Together these projects are expected to add $50 million in incremental annual operating cash flow. 

In addition to the six projects, we expanded capacity at Brandon by over 12% in 2008 and, over the years, have almost doubled our chlorate capacity in Brazil. So, we have a history of continually investing in our assets.

Continued Growth Focus

Looking ahead, we have opportunity for multi-phase expansion at NATO, a power line upgrade and potential further expansion at Brandon, a hydrochloric acid expansion at North Vancouver as well as other opportunities to derivatize more of our chlorine production, and continued investments in Brazil.

Longer term, our goal is to stick to things we know how to do well and selectively expand into new products and
markets that offer the following criteria:

  • Sustainability
  • Critical mass
  • Higher growth potential

As we find new projects to invest in, we have the project and portfolio management skills to implement them well. Our track record of success demonstrates that. We also have prudent financial management skills where we take on debt to finance growth because it makes good sense to do so, and then we de-lever our balance sheet as we realize the benefits from those growth projects. We will continue to be smart with how we capitalize growth going forward.