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GENERAL CHEMICAL CORPORATION ANNOUNCES DECOMMISSION OF DELAWARE VALLEY SULFURIC ACID PLANT
Operations to cease on or about Sept. 30 Parsippany, New Jersey, February 28, 2003 -- General Chemical Corporation, a subsidiary of GenTek Inc. (OTCBB: GNKIQ), today announced plans to decommission the sulfuric acid production operation located at its Delaware Valley facility in Claymont, Del. The sulfuric acid operation is expected to cease production on or about Sept. 30, 2003. Business as usual will continue until the decommissioning occurs. "We are personally saddened that the planned closure will affect our employees and their families," said Charlie Shaver, vice president and general manager of GenTek's Performance Products business. "The decision came after a thorough review and analysis of our options and alternatives. Unfortunately, a number of factors, including rising costs of operation, the age and inefficiency of the plant and its infrastructure and increasing competitive pressures, ultimately drove us to this decision." For the employees and their families who are affected by the closure, General Chemical is providing several programs specifically designed to assist them during this transition. To minimize the impact on its sulfuric acid regeneration and merchant acid customers, General Chemical has made arrangements to continue to offer service to these customers through its four other sulfuric acid facilities, supplemented by agreements with certain strategic partners. General Chemical representatives will discuss the details of these arrangements with customers individually. Other operations at Delaware Valley, including the production of sulfur, fluorine, potassium and ammonia-based compounds and warehousing, distribution and transportation operations, will continue. The company has developed a plan for the safe and orderly decommissioning of the sulfuric acid facility, and will comply with all applicable environmental and other legal obligations with respect to the decommissioning of the facility and any required remediation of the property. The decommissioning of the sulfuric acid facility at Delaware Valley and related actions are subject to approval by the Bankruptcy Court in Delaware. General Chemical will be filing a motion seeking such approval. General Chemical Corporation, which traces its roots to 1899, is part of GenTek's Performance Products business headquartered in Parsippany, N.J. GenTek's Performance Products segment operates a network of more than 40 production facilities in North America and Europe, in addition to various technical centers, warehouses, terminals and distribution operations, and serves a wide variety of end markets, including petroleum refining, water treatment, semiconductor, pharmaceutical and personal care, paper, foods and chemical processing. About GenTek Inc. GenTek Inc. is a technology-driven manufacturer of communications products, automotive and industrial components, and performance chemicals. A global leader in a number of markets, GenTek provides state-of-the-art connectivity solutions for telecommunications and data networks, precision automotive valve-train components, and performance chemicals for environmental, pharmaceutical and personal care, technology and chemical-processing markets. Additional information about the company is available on GenTek's Web site at www.gentek-global.com. On October 11, 2002, General Chemical, its parent, GenTek Inc., and 30 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware to facilitate a restructuring of GenTek and certain of its U.S. affiliates. General Chemical commenced its Chapter 11 process in the United States because its other Chapter 11 affiliates are all either obligors or guarantors under GenTek's senior secured credit facility. Since the Chapter 11 filings, GenTek and its affiliates, including General Chemical, have continued to operate their businesses as debtors in possession under the provisions of the U.S. Bankruptcy Code and will continue their business operations in the ordinary course. This announcement includes forward-looking statements. GenTek has based these forward-looking statements on its current expectations and projections about future events. Although GenTek believes that its assumptions made in connection with the forward-looking statements are reasonable, no assurances can be given that its assumptions and expectations will prove to have been correct. These forward-looking statements are subject to various risks, uncertainties and assumptions. GenTek undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this announcement might not occur.
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