EuroChem Group AG, Zug, Switzerland, on Oct. 8 announced the expansion of its North American distribution network via the assumption of dry and liquid fertilizer transport and storage assets from international merchandising and trading firm Trammo Inc., New York City. In August, it was reported that Trammo planned to exit these products, but would continue with anhydrous ammonia, sulfur and other commodities (GM Aug. 10, p. 25).
EuroChem said the move substantially expands its fertilizer storage capacity in the U.S., and will enable it to strengthen its presence into Western Canada as well as on the East Coast. EuroChem now operates 25 warehouses in the U.S. with a current storage capacity of about 500,000 mt.
EuroChem said the U.S. market accounted for about 11 percent of group sales in 2017. The group expanded its presence in the U.S. in October 2015 with the acquisition of Ben-Trei Fertilizer Co., a Tulsa-based fertilizer distribution business historically focused on sales within the country’s heartland (GM Nov. 2, 2015).
“The agreement with Trammo will substantially increase our storage capacity, while also broadening our geographic reach,” said EuroChem North America Managing Director Charlie Bendana. “It will support the ongoing expansion of our U.S. business, allowing us to fulfil growing demand from local farmers for high-quality fertilizers.”
However, in response to inquiries by Green Markets about the nature of the agreement with Trammo, a spokesperson for the group said EuroChem could not add anything further to the released statement. But he confirmed that the agreement includes all of Trammo’s dry and liquid fertilizer warehouses in the U.S.
EuroChem began operating in the U.S. through its Tampa-based subsidiary, EuroChem Trading USA, in 2006. The group’s sales to the U.S. market in 2014, prior to the Ben-Trei acquisition, accounted for 8 percent of its total sales.
Ben-Trei distributes a variety of dry fertilizer and feed products, primarily via truck and rail transport, and in fiscal 2015 supplied over 1 million st of product to more than 530 customers. With a secure base in key U.S. agricultural regions, from Texas and Louisiana across the Midwest Cornbelt to California, Ben-Trei has expanded its feed product distribution capabilities on the East Coast, with new sales outlets in Savannah, Ga., and Richmond, Va. It has also increased its warehousing capacity in Oklahoma and Minnesota.