Stolt-Nielsen Announce Cost Reduction Program
Reginald J.R. Lee, Chief Executive Officer of SNTG, said, "The consolidation of our customer base in the chemical industry and the resulting needs for improved and more-cost-effective services has required new strategic initiatives to improve our returns, which despite recent improvement, have been less than satisfactory in recent years. In early 2001, SNTG embarked upon a major strategic initiative to improve the utilization of our assets, divest non-core assets, and reduce our cost base. We have previously announced several aspects of this initiative including combined service agreements with other parcel tanker operators to reduce operating costs and improve utilization; the sale of non-strategic terminals in Perth Amboy and Chicago; and the construction of a new storage terminal in Braithwaite, LA and expansion of terminals in other key ports to increase the synergy between our ships and storage terminals. We are confident that these steps will enable us to better provide cost-effective services to our customers, maintain our leadership position in the industry, and improve shareholder returns."