After reporting in December that they were exploring a possible merger (GM Dec. 11, 2015), the leadership of Trupointe Cooperative Inc. in Piqua, Ohio, and Sunrise Cooperative in Fremont, Ohio, announced that they have decided to recommend the consolidation and put it to a member vote.

“We ask the membership to consider the facts of the proposed merger and think about this decision very seriously,” said George Secor, president and CEO of Sunrise. “As members, they hold a unique opportunity to play an active part in guiding our cooperatives to the future. In addition, they must also consider the potential this merger could bring to their individual operations.”

Informational meetings with the leadership of both co-ops were concluded in early February after joint articles and bylaws were drafted in January, with both boards recommending that the merger move to a member vote. The two cooperatives said both business are “financially sound separately and could continue to successfully operate so,” but touted several benefits from the proposed merger.

These benefits include stronger profits and timely equity redemption to members; size and scale that would allow better access to key partnerships and product supply chains; a larger geographic footprint to position the combined co-op to offset market risks, instability, and weather patterns; increased opportunity for facility and asset investments at a faster pace; and great opportunities to invest in important agricultural innovations.

“On behalf of the leadership and board of directors, I ask for your support of this merger,” Trupointe President and CEO Larry Hammond told members. “This opportunity is not only about ensuring our position in the marketplace for the future, but increasing the service and value you receive today as a member.”

Ballots have been mailed to voting members and must be returned by March 7 at 10:00 a.m. As a combined entity, the new cooperative would begin operations on Sept. 1, 2016, under the leadership of Secor as president and CEO. If the merger is approved by members, the new board will select the name of the entity as well as the corporate office location.

Sunrise is a full-service co-op serving 3,200 member-owners in a 12-county area of north-central Ohio. The company has 192 employees and total annual sales of $525 million, and operates grain, agronomy, feed, and energy divisions from approximately 10 Ohio locations. Sunrise’s four agronomy facilities are located at Attica, Ballville, Crestline, and Norwalk, and its five grain facilities have total storage capacity of more than 27 million bushels.

Trupointe is a member-owned agricultural and energy co-op serving approximately 4,100 members in west-central Ohio and northeastern Indiana. The company operates agronomy, grain, feed, fuel, propane, turf, and retail store divisions from some 27 locations. Trupointe was formed in 2010 (GM Feb. 15, 2010) from the merger of Southwest Landmark Inc. and Advanced Agri-Solutions Inc., operating initially from 45 locations in Ohio and Indiana with a full- and part-time workforce of 510.

Trupointe hopes to complete a $30 million construction product this year at its Milford, Ind., TruHorizons facility. The project was launched in 2013 (GM Jan. 18, 2013), with the first phase becoming operational in 2014 as a full-service agronomy hub offering dry and liquid fertilizer, crop protection products, seed and traits, crop scouting, and precision ag and application services. The second phase includes a 4.3-million-bushel grain elevator.

Royal DSM’s global caprolactam business, known as DSM Caprolactam, is now operating under the Fibrant name following the completion of a recent joint venture transaction between CVC Capital Partners and DSM.

London-based CVC was founded in 1981 and is one of the world’s leading private equity and investment advisory firms, with some 300 employees throughout Europe, Asia, and the U.S. The transaction gives CVC a 65 percent ownership and DSM a 35 percent stake in Fibrant, and as a result, company sources say Fibrant will now be importing ammonium sulfate from China to various markets, including the U.S.

“It is an honor and a pleasure to be able to announce the official launch of our new name, Fibrant,” said Pol Deturck, Fibrant CEO. “Every day Fibrant employees will do their utmost to enable our customer’s success in their respective businesses. We are excited to continue to serve our customers under the new name and build further on our heritage as a premium supplier.”

Fibrant is headquartered in Geleen, the Netherlands, and states that it “aims to be the undisputed market leader in caprolactam and its byproducts.” Fibrant employs more than 1,200 people across three continents, and has production facilities in Europe, China, and the U.S. DSM’s first caprolactam production facility was commissioned in the Netherlands in 1952, the second in Augusta, Ga., in 1966, and the third in Nanjing, China, in 2002.

According to Fibrant, the company produces 20 percent of global caprolactam capacity at more than 900 kilotons. It places total global demand for ammonium sulfate at approximately 24 million mt, of which 10 percent is produced, distributed, and supplied by Fibrant. The company produces industrial, technical, and spray grade ammonium sulfate, and refers to itself as a leader in the “development of new production methods of crystallized granular ammonium sulfate for dry blended fertilizers worldwide.”

In a recently completed report entitled Global Ammonium Sulfate Market 2015-2020: When to Expect the Rebound, Neil Fleishman, Green Markets Senior Industry Analyst, placed DSM’s total ammonium sulfate production capacity at 1.71 million mt/y, with the Nanjing plant at 800,000 mt/y, the Geleen facility at 600,000 mt/y, and the Augusta facility at 310,000 mt/y.

“North America has been one of the fastest growing markets for ammonium sulfate globally, and global utilization rates for ammonium sulfate production are likely at bottom,” said Fleishman, in reference to Fibrant’s plan to import Chinese tons to the U.S. market.

China surged past Canada to become the major import source of U.S. ammonium sulfate in the fertilizer year ending June 30, 2015, according to the U.S. Department of Commerce. Imports from China were 273,839 st, up from the prior year’s 147,398 st, while imports from Canada declined to 225,348 st from 279,950 st. Total imports for the fertilizer year were 505,583 st up from 428,935 st.

In the current fertilizer year (July-December) China has continued its lead at 189,204 st, up from 93,477 st, while Canadian imports are down at 82,906 st from 105,431 st. Agrium Inc., an AS provider, has adopted a policy of keeping more of its product in Western Canada, rather than enduring the shipping expense to U.S. points. Total U.S. imports year-to-date are 297,160 st, up from 200,343 st.

Fibrant also launched a new website at www.fibrant52.com. “With this new name and visual identity, Fibrant pays homage to its heritage serving the nylon industry and the fibers market,” the company said. “The name reflects the vibrant future and the chemistry between Fibrant and its partners.”

DSM’s connection to CVC dates back to March 2015, when DSM first reported that it was partnering with CVC in the repositioning of its Polymer Intermediates and Composite Resins businesses through the formation of a new company. DSM referred to the transaction as a “logical step” in its strategic execution, saying the businesses “no longer fit” with its focus on Nutrition and Performance Materials.

“The partnership with CVC allows DSM to further reduce the cyclicality of its portfolio, secure a long-term competitive supply position of caprolactam for DSM Engineering Plastics, and fully focus on the Nutrition, Performance Materials, and Innovation activities complemented by accelerated actions to improve efficiencies and reduce costs,” DSM said on March 16, 2015.

At the time of the initial announcement, DSM said it was contributing its global caprolactam business, its acrylonitrile business, and its Composite Resins business in a transaction with an enterprise value of €600 million, plus an earn-out of up to €175 million. Estimated net cash proceeds to DSM were reportedly €300-€350 million at closing.