TETRA Technologies (TTI) Announces Price Increase for Liquid Calcium Chloride

March 6, 2009 9:33 AM EST

TETRA Technologies, Inc. (NYSE: TTI) 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.

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 Technologies, Inc. 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. [SM]

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