Ludwigshafen, Germany-In addition to shedding part of its fertilizer business (GM March 7, p. 1), BASF SE has confirmed that it also expects to sell its 10.3 percent stake in Germany’s K+S Ag. BASF intends to place up to around 19.7 million shares of K+S with institutional investors in an accelerated book building transaction. With the expected capital gain from the sale, BASF aims to further optimize its balance sheet and continue to reduce its debt.

Moscow-Russian fertilizer producer UralChem OJSC on March 23 issued a statement denying rumors that the company was being prepared for a possible sale. “Just like other large companies in the industry, from time to time we receive offers to sell a part of the assets that belong to UralChem Group,” said Dmitry Mazepin, chairman of the company’s board of directors, in response to what UralChem said were reports in a number of mass media publications. “However, we can confirm that no sale of the company or some part of the company’s assets is currently under negotiation.” UralChem is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS, with production capacities of more than 2.5 million mt of ammonium nitrate, 2.2 million mt of ammonia, 0.8 million mt of MAP and DAP, 0.8 million mt of complex fertilizers, and 0.5 million mt of urea. The company is the second largest ammonium nitrate producer in the world and number one in Russia. Its key production assets include Azot Branch of UralChem OJSC in Berezniki in the Perm region; Kirovo-Chepetsk Chemical Works OJSC in Kirovo-Chepetsk in the Kirov region; and Voskresensk Mineral Fertilizers OJSC in Voskresensk in the Moscow region.

Moscow-Uralkali reported last week that on March 18 the Perm Territory Arbitrage (Commercial) Court partially lifted the injunction imposed in connection with claims brought Feb. 24 by OJSC Acron, Licona International Ltd., ROF (Cyprus) Ltd., and Medvezhonok Holdings Ltd. against OJSC Silvinit and Uralkali. They are seeking to invalidate decisions approved by the Silvinit shareholders meeting Feb. 4 and the merger agreement entered into between Uralkali and Silvinit. Uralkali said the court has lifted the injunction prohibiting Silvinit and its bodies from implementing the decision on the reorganization of Silvinit in the form of the merger with Uralkali approved by Silvinit shareholders. The court has also rejected the injunction prohibiting the implementation of the merger agreement and the registration of termination of Silvinit through entries into the unified state register of legal entities upon completion of the merger. The only measure remaining in force by the court relates to the prohibition on the Federal Service for Financial Markets (FSFM) from registering the Uralkali share issuance and report on results of share issuance to be placed as a result of the conversion of Silvinit shares into Uralkali shares upon completion of the merger in accordance with the merger agreement. The preliminary hearing on the merits of the claim is scheduled for April 12. Uralkali and Silvinit believe that the injunction and the claim are entirely without merit and intend to contest them vigorously in order to complete the merger, pursuant to the previously announced timetable and in accordance with the terms announced and subsequently voted on by the overwhelming majority of shareholders of both companies.

Moscow-OJSC Uralkali said it is aware of the official statement made by Migao Corp., China (GM March 21, p. 8), whereby it announced an agreement with Potash Export Co., an entity established by Russian-based potash producers. According to the statement, the agreement foresees supply of up to 500,000 mt/y of potash for ten years, starting in 2013. Being one of the two Russian potash producers, Uralkali states it is neither the establisher nor stakeholder of Potash Export Co. Furthermore, Uralkali has made no agreements with Migao or Potash Export Co. The exports of Uralkali are channeled through the Belarusian Potash Co. (BPC). Uralkali further states that BPC has entered into no agreements with Migao regarding potash supply.

Omaha-Gavilon Grain LLC and Union Elevator & Warehouse Co., Lind, Wash., on March 24 announced that the companies have signed a purchase agreement. Gavilon will acquire Union Elevator’s eastern Washington assets, including 16 grain elevators, at 12 locations, with licensed storage capacity of 8.4 million bushels. Union Elevator shareholders have approved the sale. The transaction is expected to be completed during the second quarter of 2011. “We are very pleased to be expanding our asset base with a company that has such a rich history of serving producers in eastern Washington,” said Greg Konsor, vice president and general manager of Gavilon Grain. “The addition of Union Elevator’s grain facilities and origination capabilities position us well to support the growing Pacific Northwest export wheat market and serve the Columbian Basin feed grain market.” “We are looking forward to becoming part of Gavilon’s network of grain operations,” said Randy Roth, general manager of Union Elevator. “This transaction will enable Union Elevator to continue growing in eastern Washington, backed by the financial strength of a global commodity management firm. Our partnership with Gavilon will also allow us to further expand our customer offerings as we leverage the company’s scale and scope and drive greater efficiencies through our operations.” Gavilon will retain all of Union Elevator’s current employees and assume all of Union Elevator’s forward purchase and sales contracts.

Regina-Viterra Inc. has announced two upgrades to its elevator network that will enhance its competitive position and drive further efficiencies in Western Canada’s grain handling system. Viterra will expand the storage of its North Battleford facility by 8,000 mt, bringing its overall capacity to 33,800 mt. At its Lloydminster elevator, Viterra plans to add 12,000 mt of storage for an overall capacity of 27,000 mt. The company will also increase its loading capability at Lloydminster, served by Canadian Pacific, to 112 railcars from 56. Overall, 90 percent of Viterra’s shipping capacity through its grain collection system operates with 50-100 car loaders. Construction work at the facilities is expected to begin in Spring 2011 and be completed by late Fall 2011.

Louisville, Ky.-Louisville emergency response said JBS Swift plant personnel did everything right after detecting an anhydrous ammonia release at their plant here last Wednesday afternoon (March 23). “They did everything that they should have done,” reported Jim Bottom, ER technological hazards coordinator. Bottom wasn’t certain how much leaked from the system, but described the problem as a mechanical failure when readings exceeded safe levels. Fire officials told the local press that the leak didn’t appear to be coming from a rupture, but could have been caused by a compressor failure. They said although the vapors were contained inside the plant, the decision was to have businesses and school students within a quarter of a mile shelter-in-place. Between 800 and 1,000 workers were evacuated for a couple of hours. One plant worker was taken to the hospital after becoming nauseated and vomiting, but he didn’t work in the portion of the plant where the leak occurred. “The incident occurred on fairly new equipment,” Bottom explained. “It was not like antiquated equipment built to current standards.”

Princeton, Ky.-The risk of a fire – or even worse – existed all the while granular ammonium nitrate and ANFO were being scooped up and removed after being spilled from an overturned semi last Monday (March 21) on Kentucky 91 three or four miles north of Princeton. “Our concern was that there were blasting caps also aboard the truck that could have ignited and detonated the whole 20,000 pounds aboard the truck,” Princeton Fire Chief Brent Francis advised Green Markets. “Just as a precaution we moved seven families living near the scene out of the area while the cleanup continued. Everyone knew a fire would have immediately involved the product and no one recommends fighting a fire involving a blasting agent. We would have to have allowed it to burn itself out. Everybody would have had to withdraw and let it burn itself out. Fortunately it didn’t happen.” The truck was traveling north on rural Ky. 91, one of the main highways in Caldwell County, hauling 14,000 pounds of ammonium nitrate, about 7,000 pounds of ANFO, and an undetermined number of blasting caps for Memsco Mine Equipment and Milling Supply of Dawson Springs, Ky. When the rig dropped off the shoulder, the driver overcorrected and landed in the southbound lane, where he overcorrected again. The load shifted and overturned the truck, which emptied about half of the load. Francis said Kentucky EPA handled the cleanup by mixing the ammonium nitrate and ANFO with dirt and scooping it up and loading it aboard a dump truck with a forklift. The driver was transported to Caldwell County Hospital for treatment of minor injuries. The highway was reopened after about six hours by the Kentucky Transportation Cabinet.

Pittsburgh-A 295-foot barge moored along the Ohio River near here with an estimated 2,700 tons of anhydrous ammonia got tangled up and emerged without incident when two empty barges broke loose from a tug earlier this month. “The two barges broke away and ours got bumped into. Other than that there wasn’t much to it,” is all that Steve Butts, vice president, sales, with Kirby Inland Marine, would say about the incident that occurred in the mid-afternoon March 16. But Commander Richard Timme, who heads the Coast Guard marine safety unit based in Pittsburgh, did confirm that there was superficial damage to a tool shed on the Kirby barge. He said another barge, belonging to Consol Energy, took 24 hours to refloat after being shoved down the river, stopping just short of a main bridge support and running aground on a sandbar. “(But) there was no pollution and no injuries, and release of the anhydrous ammonia was never a concern,” Timme summed up.

Los Angeles-Rentech Inc., which owns Illinois nitrogen producer Rentech Energy Midwest Corp., said March 23 that it has reached agreements to settle all of the class action lawsuits pending in federal court and all of the shareholder derivative lawsuits pending in state and federal courts against the company and a number of its current and former directors and officers. The lawsuits (GM Jan. 11, 2010) relate to the company’s restatement in December 2009 (GM Dec. 21, 2009) of certain of its financial statements for fiscal year 2008 and the first three quarters of fiscal year 2009. The company believes that it is in the best interests of its stockholders to settle the matters at a reasonable cost to avoid potentially protracted and expensive litigation. The company and the individual defendants have denied any liability or wrongdoing in connection with the allegations contained in these lawsuits. The settlement for the consolidated class action lawsuits pending in United States District Court for the Central District of California (In re Rentech Securities Litigation, Lead Case No. 2:09-cv-09495-GHK-PJW) provides for a settlement fund of $1.8 million, from which plaintiffs’ counsel will seek an award of attorney’s fees and expenses. The settlements for the consolidated shareholder derivative lawsuits pending in that same court (In re Rentech Derivative Litigation, Lead Case No. 2:10-cv-0485-GHK-PJW) and in the Superior Court of the State of California for the County of Los Angeles (Andrew L. Tarr v. Dennis L. Yakobson, et al., LASC Master File No. BC430553) provide that the company will adopt certain governance practices, and pay (or cause its insurance carrier to pay) plaintiffs’ attorney’s fees and expenses of up to $300,000. The company expects that over 90 percent of the aggregate securities class action and shareholder derivative settlement payments will be covered by its insurance carriers. The settlements are subject to court approval and certain other conditions, including notice to the company’s stockholders.