TETRA Technologies, Inc. Announces Calcium Chloride Price IncreaseMarch 6, 2009 (The Woodlands, Texas), TETRA Technologies, Inc. (“TETRA” or the “Company”) (NYSE:TTI) today announced a price increase for liquid calcium chloride. The price increase of up to $100/Dry Short Ton will be effective April 1, 2009, or as contracts allow. This increase is necessary due to a number of factors. TETRA’s primary raw material to produce calcium chloride is hydrochloric acid (HCl) which is a coproduct of other chemical processes. Due to the current economic environment, TETRA’s supply of HCl is reduced, because the demand for our supplier’s primary products has been significantly impacted. To meet current calcium chloride demand, TETRA has to purchase HCl and calcium chloride from alternative and higher cost suppliers. Additionally, the price for HCl has risen significantly over the past several years, and TETRA was not in a position to pass along the full impact of the HCl increase to the market. The inability to pass along higher raw material costs contributed to unacceptable margins in TETRA’s calcium chloride business. To stem the escalating costs to produce calcium chloride, TETRA is investing in excess of $100 million in a new manufacturing plant in El Dorado, Arkansas which will produce calcium chloride liquid, calcium chloride flake, sodium chloride, and magnesium hydroxide. The Arkansas plant allows TETRA to have ample supply of calcium chloride and replaces shrinking and higher cost existing supply. The plant is scheduled to start-up in the third quarter of 2009 and should allow the Company to meet demand in what has been a tight supply market.
TETRA Chemicals is the leading supplier of calcium chloride with ten manufacturing locations in North America and Europe plus supply agreements with major Chinese calcium chloride producers. TETRA Chemicals has over twenty-five distribution terminals in North America and Europe to provide reliable and timely service to its customer base.
TETRA is an oil and gas services company with an integrated calcium chloride and brominated products manufacturing operation that supplies feedstocks to energy markets, as well as other markets.
This press release includes certain statements that are deemed to be forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performances and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled “Certain Business Risks” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.
TETRA Technologies, Inc., The Woodlands, Texas
Geoffrey M. Hertel
281/367-1983
Fax: 281/364-4346
www.tetratec.com
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