1014669--4/11/2008--STERLING_CHEMICALS

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{stock, price, share}

{operation, natural, condition}

{cost, operation, labor}

{regulation, change, law}

{gas, price, oil}

{acquisition, growth, future}

{personnel, key, retain}

{tax, income, asset}

Our ability to expand the capacity of our acetic acid production facility is limited by the current inability to obtain sufficient quantities of carbon monoxide. We depend upon the continued operation of a single site for all of our production. Our operations involve risks that may increase our operating costs, which could reduce our profitability. Our operations are subject to operating hazards and unforeseen interruptions for which we may not be adequately insured. Terrorist attacks, the current military action in Iraq, general instability in various OPEC member nations and other attacks or acts of war in the United States and abroad may adversely affect the markets in which we operate. New regulations concerning the transportation of hazardous chemicals and the security of chemical manufacturing facilities could result in higher operating costs. We are subject to many environmental and safety regulations that may result in significant unanticipated costs or liabilities or cause interruptions in our operations. Approximately 38% of our employees are covered by a collective bargaining agreement that expires on May 1, 2012. Disputes with the Union representing these employees or other labor relations issues may negatively affect our business. A failure to retain our key employees could adversely affect our business. Transactions consummated pursuant to our plan of reorganization could result in the imposition of material tax liabilities. We may not successfully implement our acquisition strategy, and acquisitions that we pursue may present unforeseen integration obstacles or costs, increase our leverage or negatively impact our performance. Risks Relating to Our Indebtedness Our leverage and debt service obligations may adversely affect our cash flow and our ability to make payments on our indebtedness. Any failure to meet our debt obligations could harm our business, financial condition, results of operations or cash flows. Risks Relating to the Ownership of Our Common Stock Our common stock is thinly traded. There is no active trading market for our common stock and an active trading market may not develop.

Full 10-K form ▸

1014669--4/11/2008--STERLING_CHEMICALS_INC