TORONTO, April 6, 2010 (CNW) -Chemtrade Logistics Income Fund (TSX: CHE.UN) announced today that it has renewed its agreement with Canfor Pulp Limited Partnership ("Canfor") under which Chemtrade produces and exclusively supplies sodium chlorate to Canfor's pulp and paper mills in Prince George, British Columbia. The contract extension is effective immediately and extends to August 2018.

Mark Davis, President & Chief Executive Officer of Chemtrade, said, "We are delighted to have extended our long term relationship with Canfor and solidified our earnings base for the future. The extension of the Canfor contract several years ahead of schedule is indicative of the strength of our partnership with Canfor and reflects the alignment of both companies' long term business goals."

Mr. Davis said the structure of the contract remains the same. "Canfor will continue to purchase approximately 60-70% of the production of our Prince George plant, and prices will be adjusted for changes in raw material costs. Chemtrade will invest in capital improvements that will make the Prince George plant among the lowest cost producers in North America. Under our cost sharing arrangement, Canfor will benefit significantly on the volume it purchases while Chemtrade will also benefit from reduced costs on the product it sells to third parties."

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, sulphur, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is also a leading regional supplier of, sodium chlorate, phosphorous pentasulphide, and zinc oxide.