Pioneer Announces Unanticipated Reduction in Operating Rate

Pioneer Announces Unanticipated Reduction in Operating Rate 


HOUSTON, July 13  /PRNewswire-FirstCall/ -- Pioneer Companies, Inc.
(NASDAQ:PONR) announced today that it has reduced the operating rate at its
chlor-alkali production facility in St. Gabriel, Louisiana as a result of a
reduction in demand for chlorine from certain customers. Those customers have
indicated that they anticipate a return to normal demand in early August.

Beginning in mid-June the volume of chlorine produced and sold at the St.
Gabriel facility was reduced as a result of mechanical problems at the
customers' production facilities. Production and sales were reduced by
approximately 2,000 ECUs in June as a result.  Each ECU, or electrochemical
unit, consists of 1.1 tons of caustic soda and 1 ton of chlorine.  The reduced
purchases from these customers during the month of July will result in further
operating reductions that are expected to reach approximately 3,100 ECUs for
the month.

"Our chlor-alkali production facility in Becancour, Quebec also experienced an
operating problem in June, resulting in the loss of the production and sale of
approximately 3,000 ECUs.  That problem has been resolved," Michael Y.
McGovern, Pioneer's President and Chief Executive Officer, stated.

Pioneer, based in Houston, manufactures chlorine, caustic soda, bleach,
hydrochloric acid and related products used in a variety of applications,
including water treatment, plastics, pulp and paper, detergents, agricultural
chemicals, pharmaceuticals and medical disinfectants. Pioneer owns and operates
four chlor-alkali plants as well as other downstream manufacturing facilities
in North America.

Certain statements in this news release are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act. Forward- looking
statements relate to matters that are not historical facts. Such statements
involve risks and uncertainties, including, but not limited to, the risks and
uncertainties described in Pioneer's filings with the Securities and Exchange
Commission. Actual outcomes may vary materially from those indicated by the
forward-looking statements. 

DATASOURCE: Pioneer Companies, Inc.



CONTACT:  Gary Pittman of Pioneer Companies, Inc., [phone]



Web site:  http://www.piona.com/ 

Copyright