KMG Announces Realignment of Hydrofluoric Acid Operations

HOUSTON--(BUSINESS WIRE)--KMG Chemicals, Inc. (NYSE: KMG), a global provider of specialty chemicals in select markets, today announced a plan 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.