Columbian Chemicals Co. Evaluating New Facility in Bahia, Brazil

MARIETTA, Ga. - Columbian Chemicals Co. is evaluating building a new carbon black manufacturing facility in Bahia, Brazil. Land for the plant has been identified in the Camacari Pole, a chemical complex in the Bahia State, and the company is in negotiations with the landowner.

“Columbian is the recognized market leader in Brazil, and we intend to maintain that leadership position. The Bahia region is quickly becoming an important tire manufacturing area. One of our largest customers is already there, and a number of other customers recently announced plans for new manufacturing facilities near the location we are considering. Columbian is committed to providing value-added products to our customers, and growing with them in this region makes a lot of sense for all involved,” said James Berresse, president.

Both Columbian and the government of Bahia have signed a protocol of intention. Columbian has submitted the appropriate environmental permit application for construction of the facility to the Environmental Resources Center, and a public announcement about the permit was released in early December. A letter of intention also was signed with supply partners, and negotiations for feedstock, natural gas and utilities are under way.

Columbian has completed basic engineering and economic analysis. Furthermore, the company is engaged in ongoing discussions with customers in the region for anticipated supply.

At this time, Columbian is completing the final analysis for the project and expects to have a final recommendation and decision during the first quarter of this year.

Columbian Chemicals Co. is one of the world’s leading producers of carbon black – an engineered material that improves the strength, durability and overall performance of a range of products including tires and other mechanical rubber goods, as well as inks, paints, plastics and coatings. Columbian Chemicals Co. owns and operates 12 carbon black manufacturing facilities in Brazil, Canada, England, Germany, Hungary, Italy, Korea, Spain and the United States.

Based in Marietta, Georgia, Columbian Chemicals Co. is a subsidiary of Phelps Dodge Corp. (NYSE:PD), the world’s second-largest producer of copper, a world leader in the production of molybdenum, the largest producer of molybdenum-based chemicals and continuous-cast copper rod, and among the leading producers of magnet wire and carbon black. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ more than 14,000 people worldwide.

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