KMG Chemicals To Realign Hydrofluoric Acid Operations - Quick Facts

(RTTNews) - KMG Chemicals Inc.(KMG), said Monday it plans to optimize its hydrofluoric acid (HF) operations. This strategic initiative involves the cessation of HF operations in Bay Point, California in the first calendar quarter of 2015 and the subsequent decommissioning of manufacturing equipment in Bay Point.

Since 2010, KMG has had HF produced in Bay Point under a toll manufacturing agreement with Chemtrade Logistics (formerly the site was owned by General Chemical). Recently, KMG and Chemtrade mutually decided not to renew this agreement, and KMG has secured alternate supply for its HF requirements.

"We continuously pursue opportunities to optimize our businesses and enhance our offering to our customers. By realigning our Electronic Chemicals hydrofluoric acid operations, we will reduce our costs and improve our product quality," said Chris Fraser, KMG's chairman and CEO. "This initiative enables us to more fully leverage our state-of-the-art Pueblo, Colorado facility to support purification, packaging and analytical services for HF, ensuring that KMG continues to meet our customers' future requirements for increasingly pure HF."