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Methanex to Advance the Shut Down of Two High Cost Methanol Plants

Petrochemical industry | 29 Sep 2005 IST | Polymerupdate.com
Thursday September 29, 4:55 pm ET

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 29, 2005--Methanex Corporation announced today that it plans to permanently cease production of methanol and ammonia at its Kitimat site on November 1, 2005, approximately two months earlier than the previously announced closure date of early January 2006. This is as a result of an agreement reached with Mitsui & Co., Ltd., with whom Methanex has an agreement to supply ammonia produced at the Kitimat site.

Methanex~s President and C.E.O., Bruce Aitken commented, "We are pleased that we will be able to avoid future losses at our Kitimat methanol facility. As an element of our global methanol leadership strategy, we are committed to being the market leader in Western Canada and the US Pacific Northwest. In addition to converting our Kitimat site into a world-class terminal operation, we plan to have terminals in both the US Pacific Northwest and in Edmonton, Alberta, that will uniquely position us to reliably serve these markets."

In addition, Methanex plans to cease production at its 500,000 tonne per year Waitara Valley plant in New Zealand on September 30, 2005 due to unfavourable economics. This plant remains a flexible asset for Methanex, with future operations dependent on securing economically priced natural gas.

Mr. Aitken added, "We remain focused on meeting our customers~ growing needs for reliable and timely supply in the Asia Pacific region. Our 140,000 tonne storage terminal in Yeosu, Korea and our fleet of dedicated vessels, including the 100,000dwt Millennium Explorer, provide us with an excellent platform from which to supply the future needs of our Asian customers."

Methanex is a Vancouver based, publicly-traded company engaged in the worldwide production and marketing of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the Nasdaq National Market in the United States under the trading symbol "MEOH". www.methanex.com.

Information in this news release may contain forward-looking statements. By their nature, such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. They include world-wide economic conditions, actions of competitors, the availability and cost of gas feedstock, the ability to implement business strategies and pursue business opportunities, conditions in the methanol and other industries including the supply and demand for methanol and the risks attendant with producing and marketing methanol, integrating acquisitions and realizing anticipated synergies and carrying out major capital expenditure projects. Please also refer to our publicly available documents filed from time to time with securities commissions.
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