Espirito Santo, Brazil
Sodium chlorate and chlor-alkali are sold
under a long-term, fixed-margin contract
Our South American operations continue to offer stability and sustainability. In Espirito Santo, Brazil we have two plants (sodium chlorate and chlor-alkali) on a single site right next to our main customer. More than 75% of revenue comes from this customer, the world's largest eucalyptus market pulp producer, under a 25-year, fixed US-dollar margin contract established in 1999. This provides excellent cash flow predictability, which is key for a company committed to a stable dividend. Market fundamentals have remained strong, which has allowed us to operate both plants at near capacity.
Positioned for Growth
Having operated in Brazil since 1999, we know how to do business in this rapidly developing region. Incremental pulp capacity additions could create opportunities for us to invest in. We continue to look at asset-based chemical opportunities to participate in and will choose those that make strategic sense for our company as a whole.
provides cash flow predictability