Agrium to Switch out of Agricultural Ammonium Nitrate in Favor of Other Nitrogen Products
Agrium Inc. announced it will discontinue production and sales of agricultural grade ammonium nitrate. This decision was made as part of the ongoing process to optimize returns from the base business and to reduce potential exposure related to security concerns. Agrium anticipates previous sales of agricultural ammonium nitrate will be largely replaced by increased sales of other products, primarily from low cost Alberta-based facilities. As a result, this decision will not have any material effect on either earnings or capital asset net book value.
Agrium Wholesale sold approximately 300,000 tonnes of agricultural ammonium nitrate in 2004 produced at three facilities. These sales represented less than two percent of Agrium's Wholesale fertilizer gross profit in 2004. The Homestead, Nebraska ammonium nitrate facility will continue to operate as a distribution terminal for ammonia and other nitrogen products. The Kennewick, Washington nitrogen facility, will concentrate on the production of nitrogen solutions. The Redwater, Alberta facility will increase production of other nitrogen products.
Agrium's Retail operations will also no longer market ammonium nitrate and anticipate replacing these sales with increased sales of other nitrogen products such as urea, nitrogen solutions and Agrium's ESN product. Agrium's retail sales of ammonium nitrate typically average approximately thirty thousand tonnes per year, accounting for less than one percent of sales.
Other news from the department manufacturing
Get the chemical industry in your inbox
From now on, don't miss a thing: Our newsletter for the chemical industry, analytics, lab technology and process engineering brings you up to date every Tuesday and Thursday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
