AdvanSix, Parsippany, N.J., reported three initiatives with respect to ammonium sulfate, including the purchase of certain assets of Commonwealth Industrial Services Inc. (CIS), Hopewell, Va., an ammonium sulfate packaging, warehousing, and logistics services business, as well as selected industrial services businesses, including truck scales.
In addition, the company is targeting the production of 65 percent of its AS as granular, up 5 percent. It is also working to educate growers and retailers on how sulfur can boost soybean production.
“AdvanSix has been both a supplier to and customer of CIS for many years, and we understand the business well,” said Mike Hamilton, AdvanSix Vice President, Plant Nutrients. “This acquisition extends our industry-leading value chain for ammonium sulfate and creates further opportunities for us to quickly diversify and optimize our offerings to serve existing and new customers.”
AdvanSix said the CIS acquisition enables it to expand its offerings to directly supply packaged ammonium sulfate to customers, primarily in North and South America. It said it diversifies and optimizes offerings into stable agricultural and industrial uses to include spray-grade adjuvant to support crop protection, as well as other specialty fertilizers and products for industrial use. It also includes the opportunity to upgrade standard grade material to other applications and end uses that are generally of higher value. The company also expects the addition of packaging and warehousing capabilities to bolster logistics and operational efficiency in the Richmond, Va.-area plants.
AdvanSix said the CIS carve-out includes associated employees who will be integrated into the AdvanSix plant nutrients business.
As a result of recent operational excellence initiatives and enhancements in crystallizer technology and operations, AdvanSix said it is now producing more high-quality granular grade ammonium sulfate to meet the growing demand.
“AdvanSix is a leader in plant nutrients, producing top-quality ammonium sulfate at our Hopewell facility – which is the largest single-site producer in the world – for nearly 70 years,” said Erin Kane, AdvanSix President and CEO. “We continue to see increased demand for sulfur nutrition, and ammonium sulfate is proven to deliver pound-for-pound the most readily available sulfur and nitrogen to a wide variety of crops, including wheat, cotton, corn and soybeans.
“We remain committed to our growth in this area and to advancing grower education and research that validates the return on investment and effectiveness of ammonium sulfate to support the success of our customers,” Kane continued.
The company said modern soybean varieties require better management of essential nutrients, such as nitrogen and sulfur, throughout the planting season to maximize and enhance their yield potential.
AdvanSix said lab and field trials conducted by university researchers show the benefits of ammonium sulfate, which adds sulfur and supplemental nitrogen for soybeans and could mean a yield increase of as much as 10 or more bushels per acre. The company noted that soybean prices are currently at a seven-year high and season-ending stocks are projected to be down over 70 percent from the previous year.