Calgary-Agrium Inc. expects to cease production after the spring season at its plant in Winston-Salem, N.C. It will liquidate all of the product and equipment, with final closure scheduled for this fall. As it begins to ramp down, Agrium will reduce the workforce accordingly by staggering departure dates. The plant, which came to Agrium in the Royster-Clark Inc. acquisition, was built in 1948 and has 25 employees. It produces various Rainbow ammoniated fertilizer grades and various blending grades, both bulk and bagged. Approximate annual production is 22,000 st and 8,000 st, respectively. Agrium says Winston-Salem’s production demand can be managed out of its Hartsville, S.C., and Americus, Ga., facilities.
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Mishap turns industrial AN into fertilizer
Paducah, Ky.-Emergency crews worked all day to upright a truck and its three-compartment bulk trailer, loaded with 25,400 pounds of ammonium nitrate, that rolled over May 15 on two-lane State Highway 453 about a half hour east of here. Jere McCuiston, area 2 manager for the Kentucky Emergency Management Agency, praised the efforts, which ended up containing, in the trailer, all but a gallon of product despite the severity of the incident. McCuiston told Green Markets when the rig was back on its wheels the load was taken to a nearby farmer’s field and unloaded to be used as fertilizer. He described the response teams as doing it all “by the book” with the assistance of a newly-formed area HazMat team and three wrecker trucks. The driver was only 15 miles from his destination at Three Rivers rock quarry when a wheel dropped off the roadway, McCuiston reported; in an effort to maintain control he overcorrected and tipped the rig. Motorists were detoured and local authorities said there was never a threat to the public. Another fertilizer incident last week was also fortunate for the driver when a farm truck overturned near Manvel in northeastern North Dakota. Press reports said about 3,000 gallons of liquid fertilizer spilled without harming the environment. A Manvel fire and rescue team responded to wash off the highway, and the driver was uninjured. In Pennsylvania, a farm truck driver is facing charges in a May 15 accident that resulted in 500 gallons of liquid fertilizer being spread over a parking lot and grassy area, according to the local press. Witnesses said responders contained the spill and prevented the fertilizer from reaching a small nearby stream.
Commission concerned over Terra/Kemira JV
London-The Competition Commission reviewing the planned Terra Industries Inc. and Kemira GrowHow Oyj joint venture in the U.K., has provisionally concluded that the jv could damage competition in the market supply of carbon dioxide as well as those of related chemical products. The jv would merge the greater part of the UK businesses of these two companies, which are both fertilizer producers but also sell chemicals which are outputs from their processes. The commission is particularly concerned about the markets for carbon dioxide, 58-60 percent concentration nitric acid, aqueous ammonia and anhydrous ammonia. The commission notes that while fertilizer customers would still have the option of imports, that users of other products would have few, if any, alternatives. A summary of the findings can be found at www.competition-commission.org.uk. The commission is soliciting comments from interested parties in writing by May 25. Evidence may be submitted to susan.maunsell@cc.gsi.gov.uk. The final commission report is expected to be published July 12, 2007.
Four firefighters burned in anhydrous release
LaOtto, Ind.-Four volunteer firefighters suffered minor chemical burns and a half-mile area downwind was evacuated when nearly 300 gallons of anhydrous ammonia were released from a nurse tank in a farm mishap May 11 in this northeast Indiana town, according to the local fire chief. “There were less than 10 homes involved, with 20 to 30 people,” Chief Jim Molargik told Green Markets. “We also had to block off a couple of state highways.” The local press reported the evacuation of a four-square mile area and that a motorist also suffered burns, but none of the injured was hospitalized. Molargik said a hose gave way as the 600-gallon tank was being towed when the hitch on the tool bar broke on the operator’s end. The four firemen were shutting off the tank when the wind turned against them. “Those guys really prevented a lot of other problems,” Molargik said. “Their burns were pretty painful, but it was nothing that a shower didn’t take care of.” He said everything was back to normal by 10 p.m.
Illinois acts swiftly in ammonia release case
Chicago-The Illinois attorney general has filed a four-count complaint against the trucking firm under investigation in connection with the release of up to 40,000 pounds of anhydrous ammonia April 27 during transfer at a Seward farm business. The Winnebago County Circuit Court has approved an immediate injunction for the state to seize a tanker truck and equipment allegedly involved in the ammonia incident, which forced nearly all of the town’s residents to evacuate their homes overnight. The injunction orders Bradley Ellinor, doing business as Ellinor Trucking and River Rock Logistics of Lanark, to allow the Illinois EPA to secure the vehicle and liquid petroleum gas transfer hose for analysis. The injunction also prohibits Ellinor from using any equipment and hoses not appropriate for the safe delivery or transfer of anhydrous ammonia, and to assess the immediate and surrounding area and clean up the remaining effects of the alleged ammonia contamination. “When companies do not follow the required procedures for transporting hazardous material, serious accidents occur as they did in Seward,” said Attorney General Lisa Madigan, who is seeking the statutory maximum civil penalty for the alleged violations.
Agrium ESN-150 project receives award
Calgary-Agrium Inc.’s ESN-150 project is the recipient of APEGGA’s (The Association of Professional Engineers, Geologists and Geophysicists of Alberta) 2007 Summit® Award for Project Achievement. This award is presented to a project demonstrating engineering, geological, or geophysical skills and representing a substantial contribution to technical progress and the betterment of society.
Yara, Praxair establish JV in industrial gases
Oslo-Yara International ASA has signed a Heads of Agreement with Praxair Inc., the world’s third largest industrial gases company, with the intention of establishing a joint venture to further enhance development opportunities for Yara’s industrial gases business. The planned joint venture would be owned 50 percent by each partner and comprise Yara’s existing industrial gases business located in Norway, Denmark, and Sweden. The goal is to establish the new company during third quarter 2007. The jv would operate under the name Yara Praxair AS and would be based in Oslo. It would be headed by Per Kværum, with a board of directors consisting of representatives from both companies. The agreement would result in a one-time net income for Yara of more than NOK 700 million, which is expected to be booked in the third quarter. In 2006, Yara’s existing industrial gases business had sales of NOK 940 million. Yara’s CO2 business in Europe will continue as a wholly-owned business unit in Yara. Yara will continue to further develop its European CO2-activity, and will supply the new joint venture with CO2 and argon in Scandinavia.
A first for fertilizer law in Michigan
Lansing, Mich.-It’s not official as yet, but Muskegon County is expected to become the first local government to petition the state of Michigan for permission to control the content of fertilizer sold in its jurisdiction. Those who deal with such matters in the Michigan Dept. of Agriculture have not yet seen the resolution, but have been expecting it for some time from Muskegon’s County officials. Last year Muskegon adopted a county-wide ordinance prohibiting both the sale and use of phosphorous fertilizers to protect the waterways, but soon found that manufacture and sale have been the sole jurisdiction of the state since 1998. “Under Michigan fertilizer law a local entity cannot duplicate or extend something that state law addresses,” reported the department’s April Hunt. Hunt, who is state fertilizer and bulk storage manager, noted this will be a first involving fertilizer and that this means is also available to local governments on most all statutes. The department is required to hold a local public meeting within 60 days of submission of the resolution to determine the nature and extent of any unreasonable adverse effects. The Muskegon resolution is expected to state that phosphorous from fertilizer finds its way to area lakes and contributes to the growth of noxious algae blooms that can be dangerous to humans and wildlife and threaten the ecosystems of the lakes. County Health Department Director Ken Kraus suggested that the county submit as much data as possible on the threat to human health caused by phosphorous runoff. He said evidence limited to the environmental impact on lakes may not be enough to sway state officials.
Innophos reports 1Q results
Cranbury, N.J.-Innophos Holdings Inc., a North America specialty phosphates company, reported a net loss of $2.1 million on sales of $136.7 million for the first quarter ending March 31, 2007, versus the year-ago loss of $1.3 million and sales of $130.3 million. First quarter operating income was $10.0 million, down from the year-ago $11.1 million. Innophos took a first quarter charge of $1.4 million for a reduction in benefits and severance for certain personnel as part of its Mexican reorganization. The company noted weaker pricing and lower volumes in the U.S., while volumes in Mexico and Canada were up. “This was a solid quarter for Innophos,” said Randy Gress, CEO. “Now that we have completed our IPO and variable rate note refinancing, we are focused on the opportunities ahead, with an emphasis on improving business performance in the balance of 2007.” In other news, Innophos reported May 14 that it received a favorable ruling on its $106 million salt water tax appeal from the Mexican Court of Fiscal and Administrative Justice. Innophos said the Court ruled, as Innophos had argued, that tax assessments were invalid because the water in question was marine salt water and the extraction and use of the water did not require a certificate nor was it subject to fees or tax. Innophos says some $30 million in water taxes are still under appeal. It also says Rhodia S.A., the firm from which Innophos purchased its business in 2004, must indemnify Innophos and that Rhodia has assumed control of the defense in the case.
Management Briefs
The Mosaic Co. on May 17 announced two personnel changes to its commercial team. Tom Philbin assumes the new role of sales leader for the customer segments of Mosaic’s Global Feed Business, North American Ag and Industrial Products. Barb Kula assumes the new role of marketing leader, which includes the existing Marketing, Agronomy, and Customer Service teams. Both will report to Rick McLellan, Senior Vice President – Commercial.
Potash Corp. of Saskatchewan Inc. has named Keith Martell of Saskatoon to the board of directors. It also announced the retirement from the board of Jack Vicq. Martell, 44, is executive chairman of First Nations Bank of Canada. He is also a director of the Public Sector Pension Investment Board of Canada and the North West Company Inc., as well as a trustee of the North West Company Fund, Primrose Lake Trust, and Flying Dust First Nations Treaty Land Entitlement Trust. Vicq, Professor Emeritus of Accounting at the University of Saskatchewan, served on PotashCorp’s board since the company’s initial public offering in 1989.
Ed Beaman, former chief executive officer of the Agribusiness Association of Iowa, who was instrumental in developing calcium nitrate as an anhydrous ammonia anti-meth additive, is returning to the state to become the executive director of Safeguard Iowa Partnership, an organization formed earlier this year to bring the public and private sectors together for disaster preparedness. Beaman has been living in Kyrgyzstan managing a project in that country, as well as in neighboring Tajikistan for the International Fertilizer Development Center. After spending the past two years living abroad, he moved back to his home state last month.