Methanex and Mitsui OSK Lines announce agreement on Key
VANCOUVER, British Columbia and TOKYO, July 15, 2021 (GLOBE NEWSWIRE) – Methanex Corporation (TSX: MX) (NASDAQ: MEOH) (Methanex) and Mitsui OSK Lines, Ltd. (TSE: 9104) (MOL) are pleased to announce that the parties have entered into key business terms for the purchase and sale of an interest in, and the establishment of a strategic partnership involving, the subsidiary Waterfront Shipping (WFS) from Methanex. With a fleet of around 800 vessels, MOL is one of the largest shipping companies in the world. WFS is a global shipping company and operates the largest fleet of methanol tankers in the world.
MOL will acquire a 40% minority stake in WFS for US $ 145 million. Methanex will retain the remaining 60% controlling interest in WFS and continue to operate WFS as a key part of its global supply chain capabilities. There will be no change in the day-to-day operations of Waterfront Shipping as a result of this transaction, and Paul Hexter will remain President. Final agreements are subject to formal approval by MOL’s Board of Directors. Closing is subject to regulatory approval and is expected by the end of the year once all customary conditions have been met.
Through this transaction, Methanex, WFS and MOL will establish a strategic partnership, which will allow Methanex and WFS to benefit from MOL’s extensive shipping experience to further strengthen its already excellent shipping operations and capabilities.
The strategic partnership reinforces a 30-year relationship between Methanex, WFS and MOL who, in 2016, together with other key partners, jointly built the first dual-fuel ocean-going vessel capable of running on methanol. With Methanex as the world’s largest producer of methanol, WFS as the world’s largest methanol shipper, and MOL’s extensive shipping experience, the parties intend to advance the commercialization of methanol, including the renewable methanol, as a viable marine fuel.
Methanol is a safe, proven and economical marine fuel for the commercial shipping industry that can meet current and future emissions regulations. Methanol as a marine fuel can reduce sulfur oxides (SOx) up to 99%, particulate emissions (PM) up to 95% and nitrogen oxides (NOx) up to 80% compared to to conventional marine fuels. As a marine fuel, methanol also reduces CO2 emissions during combustion by up to 15%. Methanol produced from renewable sources can reduce CO2 emissions by up to 95% compared to conventional marine fuels, providing a path to meet the International Maritime Organization’s (IMO) decarbonization goals without additional investment or issues. compatibility with current dual fuel engine technology.
John Floren, President and CEO of Methanex, said: “We are delighted to extend our relationship with MOL, a leading shipping company, which will allow Waterfront Shipping to enhance its capabilities by leveraging from MOL’s extensive worldwide experience in maritime transport. We have worked with MOL for more than 30 years on the transport of methanol since the era of Cape Horn Methanol Ltd., predecessor of Methanex’s operations in Chile, and we are confident that our new strategic relationship will help develop the methanol market in as a low emission marine product. fuel.”
Takeshi Hashimoto, President of MOL, said, “MOL is delighted to partner and deepen its long-standing relationship with Methanex, the leader in the methanol industry. This transaction is in line with environmental vision 2.1. of MOL, which sees our active involvement in methanol-fueled ships as one of the measures for the adoption of clean alternative fuels.
About Methanex Corporation
Methanex is a Vancouver-based publicly traded company and the world’s largest producer and supplier of methanol to major international markets. Methanex shares are listed on the Toronto Stock Exchange in Canada under the symbol “MX” and on the NASDAQ Global Market in the United States under the symbol “MEOH”. Methanex can be viewed online at www.methanex.com.
About the waterfront expedition
Waterfront Shipping, a subsidiary of Methanex Corporation, is a global shipping company specializing in the safe, responsible and reliable transportation of bulk chemicals and clean petroleum products to major international markets in North America, Asia- Pacific, Europe and Latin America. Waterfront Shipping operates the largest ocean-going LNG carrier fleet in the world with its fleet comprising vessels from 3,000 to 50,000 deadweight tonnes. Its fleet of approximately 30 modern and offshore tankers form a seamless transportation network dedicated to maintaining an uninterrupted flow of methanol to storage terminals and customer factory sites around the world. For more information, please visit www.wfs-cl.com.
About Mitsui OSK Lines, Ltd.
Mitsui OSK Lines, Ltd., founded in 1884, is one of the leading shipping companies headquartered in Tokyo, Japan. The company operates more than 800 vessels transporting resources, energy, raw materials and finished products. For more information, please visit www.mol.co.jp/fr
FORWARD-LOOKING INFORMATION WARNING
This press release contains forward-looking statements with respect to us and our industry. These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Statements that include the words “expects”, “will” or other comparable terminology and similar statements of a forward-looking or forward-looking nature identify forward-looking statements.
More specifically and without limitation, all statements regarding the following are forward-looking statements:
- the final planned stake in Waterfront Shipping will be acquired by MOL, and
- the expected closing date of the sale of the stake in Waterfront Shipping to MOL.
We believe we have a reasonable basis for making such forward-looking statements. The forward-looking statements contained in this document are based on our experience, our perception of trends, current conditions and expected future developments and other factors. Certain important factors or assumptions have been applied in drawing the conclusions or making the forecasts or projections that are included in these forward-looking statements, including, without limitation, future expectations and assumptions regarding the following:
- absence of material negative impact, including major natural disaster or changes in laws or regulations.
However, forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by forward-looking statements. Risks and uncertainties include, but are not limited to:
- changes in laws or regulations,
- actions of governments and government authorities,
- world economic situation,
- the impacts of the COVID-19 pandemic, and
- other risks described in our 2020 annual MD&A and our 2021 first quarter MD&A.
In light of these and other factors, investors and other readers are cautioned not to place undue reliance on forward-looking statements. They do not replace the exercise of one’s own diligence and judgment. The results implied by forward-looking statements may not occur and we do not undertake to update forward-looking statements, except as required by applicable securities laws.
For more information, contact:
Methanex Investor inquires
Director, Investor Relations
+ 1-604-661-2600 or toll free: + 1-800-661-8851
Methanex media inquiries:
Director, Global Communications
+ 604-661-2600 or free number: + 1-800-661-8851
Mitsui OSK Line Inquiries
Media Relations Team
Corporate communications department
Mitsui OSK Lines, Ltd.
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