- Operating agreement expands last mile service capacity and accelerates Brenntag Essentials’ “triple” strategy in the North American northeast market
- Added capacity leverages Brenntag’s global reach on key commodity throughout North America region
Brenntag, the global market leader in chemicals and ingredients distribution, today announced a long-term operating agreement with Servitank for the dedicated use of two deep water Caustic Soda storage tanks along the St. Lawrence River in Eastern Canada.
Located on the south shore of the strategically situated Port of Bécancour in the Province of Québec, the storage tanks allow for the import of Caustic Soda by sea vessels in large quantities. This large storage capacity for Caustic Soda opens new opportunities for accelerated growth in North America’s northeast market for Brenntag. Customers in the region will also benefit from the increased security of supply on a key commodity used in traditional and emerging industries, such as pulp and paper, mining, EV batteries, nutrition and energy.
Furthermore, the increased use of sea vessels will reduce carbon emissions by lowering the use and reliance on trucks in Brenntag’s Last Mile Service Operations.
Scott Leibowitz, President Brenntag Essentials North America, commented: “This strategic step furthers the development of our ‘triple’ strategy in North America, combining our cost-efficient network of Last Mile Service Operations with our regional sourcing capabilities and supply chain services to increase interregional optimization. The expanded storage capacity in a strategic location leverages our global reach on an essential commodity like Caustic Soda and can help us take advantage of key arbitrage sourcing opportunities.”
“The combined multimodal last mile operational capabilities and the access to strategically located marine storage capacity expand our capability to serve our customers and supply partners in North America and with the highest services levels in the market,” added Martin Jette, Regional President Brenntag Essentials Canada.
