Wichita-Koch Nitrogen Co. said April 24 that it has entered into a multi-year UAN off-take agreement with Dyno Nobel. Koch Nitrogen will supply the ammonia necessary to produce the UAN and retain exclusive rights to market 100 percent of the UAN, estimated at 290,000 short tons per year, out of Dyno Nobel’s ammonium nitrate manufacturing facility in Cheyenne, Wyoming. “This agreement combines the capabilities of the two companies to add value by bringing fertilizer to the Western United States agricultural market,” said Steve Packebush, president of Koch Nitrogen. “This opens a new region for our company, allows us to better serve new and existing customers and is a win-win for both operations.” “The agreement with Koch Nitrogen gives Dyno Nobel a reliable source of ammonia and enables us to swing production to meet strong fertilizer demand,” said Peter Richards, Dyno Nobel chief operating officer. “We will also benefit from Koch Nitrogen’s extensive marketing expertise and distribution networks.” Production is expected to begin in the third quarter, 2008.
Transparency Across the Fertilizer Value-Chain