KMG Chemicals Inc was incorporated in 1992 as a Texas corporation. The Company is involved in the manufacture and sale of specialty chemicals in carefully focused markets through its two wholly-owned subsidiaries, KMG-Bernuth, Inc. and KMG Electronic Chemicals, Inc. The Company has two reportable segments namely Electronic Chemicals and Wood Treating Chemicals. Its electronic chemicals business sells high purity wet process chemicals to the semiconductor industry. The electronic chemicals business sells high purity and ultra-purity wet process chemicals to the semiconductor industry. These chemicals are used to clean and etch silicon wafers in the production of semiconductors. The business was acquired in December 2007 from Air Products and Chemicals, Inc. (Air Products), and expanded with its purchases in May 2013 and in March 2010 of the electronic chemicals businesses of OM Group, Inc. (OM Group) and General Chemical Performance Products LLP (General Chemical), respectively. Its products include sulfuric, phosphoric, and nitric and hydrofluoric acids, ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents and various blends of chemicals. The Wood Treating Chemicals supply penta and creosote to industrial customers who use these products to extend the useful life of wood, utility poles and railroad crossties. The penta products include solid blocks and concentrated solutions. Penta is used to treat utility poles, protecting them from insect damage and decay. It manufactures solid penta blocks at facility in Matamoros, Mexico. The Company sells solid penta to its customers, or dissolves it to make concentrated solutions of penta at its Matamoros, Mexico and Tuscaloosa, Alabama facilities. The Company sells penta products in the United States and in Canada. The hydrochloric acid it produces as a byproduct of penta production is sold in Mexico for use in the steel and oil well service industries. The Companys operations are subject to extensive federal, state and local laws, regulations and ordinances in the United States and abroad relating to the protection of the environment and human health and to safety, including those pertaining to chemical manufacture and distribution, waste generation, storage and disposal, discharges to waterways, and air emissions and various other health and safety matters.