Moscow-OJSC Uralkali has announced that the proposed combination of Uralkali with OJSC Silvinit was approved by shareholders of both companies Feb. 4, 2011. Completion of the proposed merger, which will create one of the world’s leading potash companies, is expected in May, subject to receipt of required governmental and regulatory approvals. Uralkali shareholders representing 98.9 percent of the votes cast at the meeting voted to approve the merger of Uralkali and Silvinit. Silvinit shareholders representing 90.9 percent of the votes cast at the meeting voted for the merger.
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OCI fertilizer plants operating, says company
Cairo-Orascom Construction Industries (OCI) said Feb. 7 that its fertilizer plants have continued to produce at normal rates. Several export shipments have been completed this week, including 52,000 mt of urea. OCI said urea is sold out through mid-March. Two ammonia vessels totaling 38,500 mt were expected to complete loading soon. OCI said that work has resumed at its headquarters office. It said work at its construction group has resumed at 50 locations across Egypt, representing almost 90 percent of the total work sites as of Feb. 6. Certain sites remain closed due to the joint venture nature of the projects. OCI said it is actively communicating with partners and clients to resume work on these remaining sites. OCI said that international operations across both its construction and fertilizer groups were unaffected by the events in Egypt and have continued to operate normally.
Novozymes closes on EMD
Bagsvaerd, Denmark-Novozymes A/S said Feb. 7 that it has closed on its purchase of EMD/Merck Crop BioScience, Brookfield, Wisc., from Merck KGaA for $283 million. The company said for the next three to six months it will be business as usual and that employees from both companies will work on a plan to smoothly integrate EMD into Novozymes. Merck’s divested Crop BioScience business researches, develops, and commercializes technologies used to improve plant health and crop yields. These activities are carried out in North and South America through three dedicated legal entities: EMD Crop BioScience, Milwaukee, U.S.; EMD Crop BioScience Canada; and Merck Crop BioScience Argentina. The Crop BioScience business generated about EUR 35 million of sales in 2009 and employs approximately 165 people. EMD/Merck Crop BioScience has had an average annual growth rate of roughly 15 percent over the last seven years, with expected sales in 2010 of roughly $60 million. Novozymes said future expected sales growth supports the company’s long-term expectations of more than 10 percent annual organic sales growth. EMD/Merck Crop BioScience is also a profitable company, with EBIT margins supportive of Novozymes’ long-term expectations of more than 20 percent. Novozymes says its biofertility products increase the supply of nutrients to crops, and include nitrogen inoculants for legume crops, signaling compounds to enhance nitrogen fixation, and products that increase the availability of phosphate to crops. Novozymes’ biocontrol products control insect, disease, and weed crop pests. Novozymes’ bioyield enhancement products stimulate crop stress resistance and generally improve crop health and productivity. Novozymes has over 700 products in 130 countries.
Foster Wheeler wins contract:?á carnallite project
Zug, Switzerland-Foster Wheeler AG announced that its Global Engineering and Construction Group has been awarded a feasibility study contract by Karnalyte Resources Inc. for the Wynyard Carnallite Potash Project in Saskatchewan, Canada. The study will consider initial production of 500,000 tons per year and expansion of the facility to two million tons per year within five to six years. The Wynyard facility is expected to recover high purity potassium chloride, which will be used to produce potash fertilizer, from potash ore deposits. Foster Wheeler will also coordinate preparation of the overall Environmental Impact Statement, which will advance concurrently with the feasibility study.
MagnaGro owner faces revocation hearing
Topeka-A spokeswoman for the judge in U.S. District Court here confirmed that MagnaGro owner Raymond Sawyer, whose problems with city and federal officials peaked last year when two workers died in an accident at the MagnaGro plant in Lawrence, Kan. (GM April 5, Aug. 9, 2010), will have a revocation hearing Feb. 11. U.S. District Judge Julie Robinson scheduled the hearing to determine whether Sawyer has violated terms of the probation he was granted in 2009 for illegally discharging wastes from fertilizer blending (GM March 2, 2009). Sawyer, who was arrested on a warrant on Jan. 14, is on probation for pleading guilty in 2009 to discharging waste from his fertilizer operation into the city’s sewer system. Sawyer was arrested for violating terms of the probation.
K+S increases Potash One stake to 90.9 percent
Basel, Germany-K+S Aktiengesellschaft has announced that its indirect wholly owned subsidiary, K+S Canada Holdings Inc., now owns 90.9 percent of Potash One Inc.’s shares as of Feb. 4, 2010. Since the offer has been accepted by the holders of more than 90 percent of the Potash One shares, K+S Canada intends to exercise its right to acquire the remaining approximately 8,718,914 outstanding Potash One shares pursuant to a compulsory acquisition under the Canada Business Corporations Act. K+S Canada expects to complete the compulsory acquisition within the next 90 days.
Viterra announces senior note offering
Calgary-Viterra Inc. on Feb. 10 announced an offering in Canada of C$200 million of senior unsecured notes with a maturity date of Feb. 16, 2021, and a yield of 6.406 percent. The offering is being made pursuant to the company’s short form base shelf prospectus dated Aug. 6, 2010, and a prospectus supplement to be filed on or about Feb. 10, 2011. “Bond market yields are very attractive. We see this as another opportunity to reduce future financing risk and bolster liquidity during this rising commodity price cycle,” said Viterra CFO Rex McLennan. The proceeds will be used to partially repay drawings on its global credit facility.
Fund-raising events held at TFI conference
Scottsdale, Ariz.-The Fertilizer Institute (TFI) kicked off a first-ever “live auction” event at the 2011 Fertilizer Marketing Business Meeting in Phoenix to raise money for the Nutrients for Life Foundation. Playing the part of auctioneer, TFI President Ford West took the stage on Feb. 9 as conference attendees bid more than $22,000 for a range of donated items, including a king-sized bed set donated by Hyatt; attendance at the March 25 Chicago Bulls/Memphis Grizzlies basketball game in PotashCorp’s skybox at the United Center in Chicago; a five-day retreat at the Wood River Lodge in Ketchum, Idaho, donated by Simplot; a three-day stay at the private Bath Lodge in Bath, N.C., donated by PotashCorp; a guided two-day fishing trip in Polk County, Florida, donated by the Mosaic Co.; and a two-night stay at either the Le Centre Sheraton in Montreal or the Sheraton New York in New York City, donated by Starwood Hotels and Resorts. TFI also reported that approximately $15,000 was raised for its FERT PAC political action committee at the conference’s Casino Night event on Feb. 8.
Others may be following N.J. fertilizer ban
Annapolis, Md.-Similar bills have been introduced in the Maryland, Pennsylvania, and Virginia legislatures that would follow the lead of New Jersey in imposing tight restrictions on turf use of nitrogen and phosphorus fertilizer. None of the proposals would apply to fertilizer used in agriculture, but would instead focus on private residences, businesses, golf courses, cemeteries, public properties, and other such locations. According to the Chesapeake Bay Commission, which is championing the proposed legislation, the sale of phosphorous fertilizers would be allowed only on newly established lawns, where soil tests show phosphorus was needed, or to repair turf. Nitrogen would also be limited, and no de-icing agents containing fertilizer could be sold. In the Maryland bill, which preempts local restrictions, fertilizer application on lawns would be banned from Nov. 15 to March 1, or when the ground is frozen, or to impervious pavement, and would be extended to professional applicators. Labels must contain a warning not to apply near water, storm drains, or drainage ditches, or if heavy rain is expected. Commercial applicators would need to be licensed and trained and maintain records of the amount of nutrients they applied to the land and plants. The Maryland Department of Agriculture and the University of Maryland would be responsible for getting out the word to consumers within one year of enactment of the bill.
Florida bill would ban local fertilizer bans
Tallahassee-The Florida Legislature is considering a bill that would override fertilizer bans passed by counties and cities. The Legislature has tried to pass a state law governing application of fertilizers, rather than the various ordinances that local governments began adopting since 2007. The local bans were passed in an effort to keep fertilizers out of waterways and reduce pollution and growth of algae that kill fish and promote the growth of red tide. Pinellas County has a summer ban of nitrogen-based fertilizers, while across Tampa Bay in Hillsborough County a ban on applications within 36 hours of a heavy rainstorm or within 10 feet of the water is in effect. A total of 19 ordinances of cities and counties are in effect in the state. The chance of passing the bill appeared to be greater this year because Republicans hold a vast majority of the seats in both houses, and newly elected Gov. Rick Scott, also a Republican, opposes any regulations that could have a negative effect on business. Proponents claim the patchwork of local laws makes it difficult for companies to train employees if their companies operate in more than one jurisdiction. The bill’s sponsors, Sen. Greg Evers (R-Crestview) and Sen. Clay Ingram (R-Pensacola) said the local ordinances could go no farther than a model regulation by state agencies. Opponents of the bill said the local ordinances save the state money by preventing pollution, and that it is easier to prevent than it is to clean it up.