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Backgrounder on Ministry of Environment Issues and Rothsay Dundas

Ontario – November 1, 2005 — Rothsay today was fined for contravening Ministry of the Environment legislation and has agreed to settle all matters relating to the charges. The Company has taken action to address the compliance issues at its plant in Flamborough, Ontario.

$50-million Investment in a Sustainable Environmental Solution

The Rothsay plant, which provides a vital recycling service to the food processing industry, was built in the early 1950s and was not constructed to meet today’s environmental standards. Since 2002, Rothsay has invested over $50-million to provide a sustainable environmental solution at the plant that would consistently achieve strong performance and minimize any environmental impact.

The $50-million investment in facility upgrades and expenses includes :

  • $10-million in upgrading rendering equipment, completed in 2002
  • $11-million in world-class odour abatement technology (biofilter), completed in 2003
  • $27-million in wastewater treatment upgrades and associated expenses, and the construction of a new integrated water management system, currently being commissioned
  • $1.7-million in a raw material storage building, completed in October 2005

Investments Achieving Strong Results

The company is committed to minimizing the environmental impact of its operations and its investments are delivering significantly improved performance. The biofilter is achieving odour removal that is better than performance expectations and regulatory requirements. Since 2003, the plant’s wastewater treatment facility has achieved a compliance rate greater than 99%. It will realize substantial improvements in water recycling, reducing water consumption by 90%, when commissioning of the new integrated water management system is complete.

Through our actions and our significant financial investments, we now have world-class environmental systems at the plant to meet both current and future requirements that can consistently achieve strong environmental performance.