Some 94 members of the local United Auto Workers, Local 1391 (UAW) union were still on strike at CVR Partners LP’s East Dubuque, Ill., nitrogen plant this week (GM Oct. 20, p. 1). The strike began on Oct. 18.
CVR President and CEO Mark Pytosh told analysts on an Oct. 31 earnings call that the company does not expect any disruption in operations or any change in utilization due to the strike. He said the plant is fully manned and the company expects it to run safely and reliably on a continuous basis 24/7.
Pytosh said the company is expecting a fourth-quarter utilization rate of 85-90% at East Dubuque, down from a company-wide average of 99% in the third quarter, but he stressed that this has nothing to do with the strike.
“We had a mechanical issue right at the end of the third quarter and that carried into October,” Pytosh said. “We completed a repair a few weeks ago and so that is why we lowered out forecast for the utilization. It is not related to the strike.”
CVR expects East Dubuque’s rate will pull down the company average for the fourth quarter to 90-95% from the third quarter’s 99%. The Coffeyville plant is expected to achieve 95-100%.