Noranda forges sulphur pact as part of restructuring

Toronto-based Noranda has signed an agreement with Wilmington, Del.-based chemical giant DuPont to form Noranda DuPont LLC, a 50-50 joint venture, to market, transport and distribute sulphuric acid in North America.

Under the agreement, terms of which were not disclosed, the joint-venture company will purchase and resell to customers all of the North American output of the sulphuric acid operations of DuPont, Noranda and Noranda’s 47.5%-owned affiliate, Falconbridge.

Both DuPont and Noranda had been seeking to restructure their commodity sulphuric acid businesses. In a joint release, the two companies asserted that by combining their businesses they will be able to provide value and improved service to sulphuric acid customers, while strengthening their individual businesses.

For Noranda, the deal is part of the company’s overall restructuring strategy.

Both partners will continue to manage their respective manufacturing operations. DuPont’s specialty acids business (oleum, sulphur trioxide, chlorosulphonic acid, and spent acid recycling) will remain part of DuPont’s global sulphur products business, and will not be a part of the joint venture.

“The benefits of combining the marketing, transportation and distribution of our sulphuric acid will allow us to provide greater value to our customers through superior service, an assurance of supply with multiple ship points and delivery options, and improved efficiencies,” says Noranda vice- president, Kim Ross, who will serve as president of the new joint venture.

Adds Joe Laezza, Falconbridge’s vice president of marketing and sales: “We regard the

formation of this joint venture as an innovative and cost-efficient method of distributing our acid and forming closer customer relationships and alliances.”

“This new venture will provide growth to both partners, but will also allow us to start with an organization built with a focus tied to customer needs,” says Edward Brown, Jr., business and operations manager for DuPont Sulphur Products.

Noranda operates sulphuric acid manufacturing facilities at Rouyn-Noranda, Murdochville and Valleyfield, Que., and at Belledune, N.B. Falconbridge owns sulphuric acid operations at Sudbury and Timmins, Ont.

DuPont’s sulphuric acid operations are at North Bend, Ohio, Wurtland, Ky., Richmond, Va., Burnside and Lake Charles, La., and LaPorte, Tex.