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Agrium Advanced Technologies (AAT) – management brief

Management Briefs

Agrium Advanced Technologies (AAT) has added new sales professionals and promoted several team members as a result of growth in its ESN and micronutrients markets.
Roger Gunning, based in Elwood, Ind., has been named sales manager for the Eastern Region, and will manage the sales team across the eastern part of the U.S. Andy Schenk, based in Eagle, Idaho, has been named sales manager, Specialty Agriculture, and will manage California as well as parts of the Southwest and Southeast. John Gibson, based in Regina, Sask., has been named sales manager for Western Canada, and will manage sales in British Columbia, Alberta, Saskatchewan, and Manitoba. AAT has also created a position to work directly with large farming operations and industry organizations. Randy Krotz will be working as strategic sales lead for Agriculture and will be based in Wildwood, Mo.

“It’s been an incredible couple of years for AAT. We’ve made several acquisitions in that time and have significantly increased our manufacturing capabilities to meet the demand for ESN and our line of micronutrients,” said Andrew Mittag, AAT president. “We are poised to support our sales team as we grow, which is crucial to the expansion of our organization. As growers continue to experience success through the use of our products, we are working to assure there is ample product and knowledgeable resources available to them.”

Compass Minerals – Management Brief

Management Briefs

Amy J. Yoder has been appointed to the board of directors of Compass Minerals, Overland Park, Kan., expanding the board membership to nine. She will serve as a Class II director with a term expiring at the 2014 Annual Meeting of Stockholders. Her roles will include service on the board’s Nominating/Corporate Governance and Environmental, Health and Safety committees.

Yoder, 45, is head of North America and Australia for Arysta LifeScience North America LLC. She has more than 20 years of agribusiness, consumer products, and chemical industry experience, including serving as a senior advisor for Atlas Advisors, president of the United Industries division of Spectrum Brands Inc., and vice president and general manager of Biolab, a subsidiary of Chemtura Inc. She also has held progressively responsible positions with DuPont, Monsanto, UAP Timberland, and Nufarm Americas.

IFA reports good turnout despite boycott

Middle East, News, News Briefs

Doha — As the final numbers were being tallied, attendance at the International Fertilizer Industry Association’s (IFA) 80th Annual Conference May 21-23 in Doha was expected to be close to that of the 2011 conference in Montreal, which topped the 1,100 mark. On the final list of participants some 30 Indian attendees were listed as having cancelled, with over 60 initially signing up. Sources noted that some key Indian players were in attendance – not only those that are directly involved with IFA committees, but also market players, such as potash buyers, for example. Host company Qatar Fertiliser Co. (QAFCO) and minority partner Yara International ASA provided attendees with the kind of lavish hospitality IFA attendees have come to expect, topped off by a fantastic gala during the closing ceremonies. In the meantime, well-attended sessions provided preliminary short, medium, and long-term forecasts.

PotashCorp announces layoffs at Aurora

News, News Briefs

Aurora, N.C. — PCS Phosphate Company Inc. (PotashCorp-Aurora) announced on May 21 that it is reducing staffing levels at its phosphate facility in Aurora, N.C., by approximately 150 full-time positions, or about 15 percent of its current workforce. The workforce reduction will take place in two phases, the company said. Employees will first be offered a voluntary separation package, and if target reductions are not met, involuntary separations will take place. The effective date of the layoffs will be June 30, 2012. “This is a difficult day for our employees and our company,” said Steve Beckel, general manager of PotashCorp-Aurora. “As a company, we never take these decisions lightly. However, remaining competitive for the long term is in the best interests of both our community and our company.” Following a review of key operating processes, changes were identified to lower operating costs while maintaining the operational capability of the facility. The company said these changes are necessary to maintain the facility’s long term competitiveness in a global marketplace. “Many employees are being affected by this decision. We will work to help them make a successful transition,” said Beckel. “While it is regrettable that we must take these actions, PotashCorp-Aurora is committed to this community and North Carolina for the long term.”

Miss Phos employee dies in accident

News, News Briefs, U.S. Gulf

Pascagoula, Miss. — Mississippi Phosphates Corporation confirmed that an employee died during a maintenance procedure on May 21 at the company’s Gulf Coast fertilizer facility east of Pascagoula. The victim was identified as Jeffrey Simpson, 39, of Pascagoula, who died when some sort of machinery explosion occurred. The company said in a statement that the accidental death occurred in a portion of the plant that "was not operational and there is no threat to employees or the public." The victim was pronounced dead at the scene by County Coroner Vicki Broadus shortly after the explosion. An autopsy conducted by the coroner the next day attributed the death to head trauma. Mississippi Phosphates said it is currently in the investigation process, and will release more information as the investigation proceeds. "We are cooperating with all responding and investigating governmental and regulatory agencies," the company said. "At this point, our primary concern is with the family of the deceased and our other employees and their families." Jackson County Sheriff Mike Byrd told Green Markets that he didn’t know exactly what exploded, “but the man died as a result of shrapnel from the machine that blew up.” The regional OSHA office at Jackson said the agency had an inspector on the site shortly after the incident, and Regional Assistant Director Jesse Baynes said there will be a full investigation “as we do of all work-related fatalities.” Mississippi Phosphates’ manufacturing facilities in Pascagoula consist of two sulfuric acid plants, a phosphoric acid plant, and a DAP granulation plant. DAP production capacity at the site is approximately 850,000 st/y.

Sales process for CVR commences on May 24

News, News Briefs

Sugar Land, Texas — CVR Energy Inc. on May 24 announced that it has engaged Jefferies & Company Inc. to conduct the sale process agreed to by the previous CVR board and certain affiliates of Carl Icahn to solicit acquisition proposals from third parties to acquire CVR. The 60-day process began May 24 and will end July 23, 2012. Icahn Enterprises L.P., now the owner of approximately 80 percent of CVR, has agreed to support any bona fide offer made during this period to acquire the stock or assets of CVR for all-cash consideration that results in each stockholder receiving a net amount equal to or exceeding $35 per share. Icahn Enterprises may consider offers below $35 per share but is not obligated to accept, and is not committed to supporting any cash or non-cash offer after the 60-day sale process. If a definitive agreement for the sale of CVR at more than $30 per share is executed on or prior to Aug. 18, 2013, and the transaction closes, holders of the contingent value rights that were issued in connection with the recently expired tender offer by Icahn will receive the difference between $30 and the per share sale price. As previously reported, CVR and Icahn Enterprises and its affiliates have so far attempted to find buyers without success. If no offers are forthcoming and no transaction is completed during the 60-day sale process or during the subsequent 13 months, the contingent value rights will expire worthless. If the 60-day sale process ends without an offer that is accepted, Icahn Enterprises is under no obligation to attempt to sell CVR and intends to focus on operating CVR’s business for the benefit of its shareholders, stating that continual shopping of CVR could be disruptive to its operations. It is possible that CVR may sell less than all of the assets, in which case holders of contingent value rights will not become entitled to any payments. However, no partial sales of assets will take place during the 60-day sale process. If CVR has not been sold by the end of the 60-day process, Icahn Enterprises or CVR will issue a news release or provide to holders of the contingent value rights a notice describing the results of their efforts, including the number of indications of interest received, the number of bona fide offers, a brief description of the reasons why any such offers were not accepted, and the aggregate amount of fees and expenses incurred with respect to those efforts. Otherwise, neither Icahn Enterprises nor CVR will be commenting on the sale process, except as may be required by applicable law.

Jacobs awarded contract for MaÆaden project

California, News, News Briefs

Pasadena, Calif. — Jacobs Engineering Group Inc. announced on May 22 that it was awarded a contract by Saudi Arabian Mining Company (Ma’aden) to provide a bankable feasibility study/front end engineering design (FEED) for its Umm Wu’al Phosphate Project in the Sirhan-Turaif region in Saudi Arabia. The contract value was not disclosed. Ma’aden is proceeding with the development of its Umm Wu’al Phosphate Project, a major phosphate resource in the north of Saudi Arabia, to supply merchant grade phosphoric acid (MGA) to the fertilizer, food, and animal feed industries. The greenfield project is located 35 kilometers northeast of Turaif and roughly 100 kilometers west of the Ma’aden Phosphate Company beneficiation complex. The project envisions an open pit mine and beneficiation process, adding approximately 1.5 million mt to Ma’aden’s planned annual phosphate capacity, which is expected to be marketed locally and internationally. In addition to the new MGA production, the project will supply phosphate intermediate products, including purified phosphoric acid, sodium tri-poly-phosphate, mono-calcium phosphate, and di-calcium phosphate, to augment Ma’aden’s phosphate product mix. The overall project requires a power distribution plant and associated infrastructure. “This is a significant project in Ma’aden’s commitment to grow its production capacity within Saudi Arabia, and we are delighted to bring our extensive experience in the region and the global mineral resources industry to support it,” said Mike Coyle, Jacobs Group vice president. “We look forward to working with Ma’aden to support its growth objectives.”

Fertilizer boosts ICLÆs 1Q revenues and profits

Israel, News, News Briefs

Tel Aviv — Israel Chemicals Ltd. (ICL) reported a small increase in both net profits and revenues in the first quarter of 2012. Net profits totaled $288 million on record revenues of $1.55 billion, versus $280 million on revenues of $1.53 billion during last year’s first quarter. While revenues of its other divisions declined, the ICL Fertilizers division reported first-quarter revenues of $846 million (51.6 percent of total revenues), versus $836.7 million (51.8 percent of total revenues) in the first quarter of 2011. Gross profits for ICL Fertilizers dropped slightly, to $242.2 million versus $243.5 million in 2011. Fertilizer and phosphate sales rose to $429.8 million versus $393.7 million, an increase attributed entirely to the inclusion of sales of specialty fertilizer companies ICL acquired during 2011, which contributed $105 million in revenues during the first quarter. Phosphate fertilizer sales totaled 329,000 mt, a 32 percent decrease from the first quarter of 2011, but 2012 sales were at higher prices. Potash sales totaled 919,000 mt, compared to 1.05 million mt tons in the year-ago quarter, while potash revenues fell to $446.5 million compared to $475.5 million last year. ICL attributed the drop to a delay in signing supply agreements in China, a request for a delay in shipments to India, and high inventories in the U.S. This was partially offset by higher potash sales to Brazil, which totaled 170,000 mt. The company views Brazil as an important market, and actually increased sales despite an overall decline in potash imports to Brazil. Potash production totaled 1.212 million mt versus 748,000 mt last year, while phosphate rock production totaled 876,000 mt versus 793.000 mt in the previous year. Fertilizer production totaled 371,000 mt, versus 412,000 mt in the first quarter of 2011. ICL noted that it has witnessed an improvement in potash and fertilizer sales in the second quarter, and that it has signed contracts with Chinese importers for the sale of 670,000 mt and an option for 120,000 mt for the first half of 2012. The company also reported that during the first quarter ICL Fertilizers began selling polysulphate, a new product based on polyhalite, which is produced from mineral beds of Cleveland Potash in northeastern England. The company said that an extensive survey found more than a billion tons of polyhalite at its English facility.

CHS invests in grain export terminal in Brazil

Brazil, Midwest, News, News Briefs

St. Paul, Minn. — CHS Inc. announced on May 24 that it has purchased a 25 percent ownership in TCN, a recently-formed Brazilian logistics company founded by NovaAgri, Sao Paulo, Brazil. NovaAgri will own 75 percent of TCN shares. In addition to the ownership investment, CHS also signed a long-term agreement with TCN, securing export terminal access at the Port of Itaqui, Sao Luis, Brazil. "This major and strategic investment gives CHS competitive access to the fastest growing region of Brazil and further strengthens our ability to supply soybeans and corn to global customers," said Stefano Rettore, senior vice president, CHS South America. "We believe demographics and income growth, especially in developing economies, means the world demand for soybeans and corn will increase. This partnership fits into CHS aspirations to expand our global commodities footprint to meet growing demand, and to continue to add value to our member-owners’ investment." Infrastructure development at the Port of Itaqui is expected to improve market access for Brazilian growers by reducing logistical bottlenecks, and increased exports will also improve Brazil’s trade balance, Rettore said. In October 2011, TCN was awarded the right to construct one of four export terminals in the Port of Itaqui. Construction will begin in August 2012, with completion expected during the second half of 2013.

Brink Terminal making move to Michigan site

Great Lakes, News, News Briefs

Bangor Township, Mich. — Brink Terminal Services, a liquid fertilizer manufacturer for private and industrial farms, has disclosed plans to invest $3.2 million to sublease 10 to 15 acres in an industrial area. The company plans to spend $1.8 million toward tank rehabilitation and repair, and $1.4 million to prepare the site for operations. The company already has a site in Muskegon. In a recent public hearing, the Bangor Township board approved the request by Port Fisher, owner of Bay Aggregate Inc., to create an 80-acre industrial development district along the Saginaw River. In addition, the board opened a second hearing to create a rehabilitation site, which contains four 15,000-ton steel tanks. “Two public hearings were held involving neighboring industries,” said Terry Watson, supervisor for the township of Bangor. Watson told Green Markets that both requests were approved by the board. “Representatives from Brink Terminal Service have already been out to the site. Since August is the company’s peak season, they are anxious to get started,” added Watson. Watson said that the company needs to make sure that the steel tanks are up-to-par structurally. Operations manager Brian Brink also mentioned that the tanks haven’t been used in over ten years, so structural steel work to repair some areas is needed. “There will be a lot of maintenance to get existing infrastructure back in use,” said Brink. The company receives shipments of concentrated nitrogen and phosphate liquid fertilizers, which are then processed on-site. The finished product is available to retailers, where small farms and others can purchase it. Brink said his operation benefits local farmers and reaches agricultural consumers in the thumb and central Michigan regions.