A fire has been put out at the Israel Chemicals Ltd.’s Rotem Amfert phosphoric acid and fertilizer plant in Dimona, Israel. While initial reports were that there were no injuries, five workers did complain of smoke inhalation, and one fireman suffered light injuries from a fall.

A smokestack at a production facility collapsed. The production facility may also be affected, though there was no word yet as to whether production will be affected. A company spokeswoman said assessment of damage would be conducted over the next few days. The fire fighters were able to keep the fire away from storage facilities.

Residents within one mile of Miller Chemical and Fertilizer Corp. in Conewago Township, Adams County, Pennsylvania, have been advised as a precautionary measure to continue to stay inside as heavy smoke continued to rise from a chemical fire burning since early Monday morning June 8. According to Adams County Emergency Management, businesses within the one-mile radius should also remain closed as the advisory remained in effect in both York and Adams counties.

Latest word was the fire was under control but was allowed to continue as a controlled burn Fire officials stated that continued air monitoring has not found toxic chemicals released into the air but the smoke could pose complications to individuals with existing respiratory illness or vulnerabilities.

Damage to the facility was reported as extensive.

Southern Ionics Inc., a privately-held inorganic chemical manufacturer, mining company, and terminal operator, reports that it has purchased CF Industries Holdings Inc.’s indirect ownership interest in Houston Ammonia Terminal LP, effective June 5, 2015. Houston Ammonia Terminal provides ammonia storage services and supplies upgraded ammonia products to local and regional U.S. Gulf Coast markets.

The second urea tender for 50,000 mt sponsored by the Trading Corporation of Pakistan (TCP) closed June 1. Samsung came in with the lowest price at $318.53/mt CFR. Its nearest rival – Dreymoor – came in a penny higher.

These prices are just a few cents lower than those by the same companies in the May 29 tender. All other offers in the June 1 tender were significantly higher, with prices ranging from $325-$335/mt CFR. The Samsung offer has an estimated netback to China of $299/mt FOB. The higher offers were all closer to the price expectations of the Chinese producers, with estimated netbacks ranging from $305-$315/mt FOB.

Higher prices in this tender were expected. Chinese producers began demanding higher prices on the heels of the Indian tender in May. At the IFA conference in Istanbul last week, Chinese prices were quoted at $310/mt FOB for prills. Sources speculate that the Samsung and Dreymoor tons are cargoes picked up before the price increases took effect.

The Pakistan government recently authorized TCP to import an additional 150,000 mt of urea for the upcoming application season. Tenders for this amount are expected to be announced soon.

The strike at Israel Chemicals Ltd. (ICL) is expected to be officially over later today. Company and union sources said that an agreement had been reached to end the strike, which has dragged on for more than three-and-a-half months.

Final details of the agreement are to be made public later today, but Israeli media is reporting that the agreement includes the laying off of 40 workers with another 100 going on early retirement. The 100 employees slated for retirement will be divided equally at Dead Sea Works and Dead Sea Bromine Compounds, the two subsidiaries that went on strike in February.

The strike was one of the longest in Israel’s history. Earlier this month, ICL reported that the strike had led to a $200 million drop in revenues and a $76 million drop in profits in the first quarter of 2015. Potash sales during the quarter fell to $377 million versus $491 million in last year’s first quarter, while potash production fell to 834,000 mt versus last year’s 1.27 million mt. Total potash sales in the first quarter were 1.141 million mt versus 1.467 million mt last year, while inventories dropped sharply, falling to 607,000 mt at the end of the first quarter compared to 929,000 mt last year.

Vienna-based Borealis, which is involved in polyolefins, base chemicals and fertilizers, and Agrifos Partners LLC, a project development company, have reached a preliminary agreement to jointly develop a world-scale ammonia project through Gulf Coast Ammonia LLC (GCA). The plant will be located within an existing chemical site along the Texas Gulf Coast.

GCA is in final negotiations with a short list of strategic site owners and expects to make a final site selection within the coming few months.  The brownfield, hydrogen-based project is scheduled for mechanical completion and start-up in early 2019. The site will benefit from existing infrastructure and logistics capabilities which will allow product supply to a variety of long-term off-takers and customers.  

The final agreement with Borealis, which would be subject to its Supervisory Board approval, contemplates significant equity participation by Borealis in the project. Borealis would also enter into a long-term offtake agreement for approximately 40 percent of the ammonia produced by the plant.

"We have a clear strategy of expanding our global nitrogen business," says Markku Korvenranta, Borealis executive vice president for Base Chemicals. "By participating in the development of, construction of and offtake from a world-scale project in the U.S., Borealis is able to secure long-term supplies of ammonia based on the attractive economics of U.S. natural gas. It also is a key step in the Borealis goal to sell 10 million tons of nitrogen-based fertilizer products per year by 2020. Gulf Coast Ammonia’s project is all the more compelling because it builds on existing site capabilities and assets along the US Gulf Coast."

GCA expects to make further announcements in the near future concerning additional product offtake commitments, feedstock supply arrangements, permitting and construction contracts.

The Andersons Inc. has announced the purchase of the fertilizer assets of Kay Flo Industries of North Sioux City, SD.

"This acquisition is an excellent strategic fit for our Plant Nutrient Group and is consistent with our plans to expand our wholesale and specialty fertilizer business," said CEO Mike Anderson. "As a family-owned business with a history of nearly 90 years and a similar philosophy in providing exceptional customer service, Kay Flo is an excellent cultural fit."

Kay Flo, through its Nutra-Flo Division, is the leading U.S. manufacturer of premium liquid starter fertilizers and is also a leading manufacturer and formulator of micronutrient enriched plant nutrients. Nutra-Flo serves hundreds of growers, ranchers, and agribusinesses throughout the Western Corn Belt with these products along with its conventional fertilizers.

Raun Lohry, former CFO of Kay Flo who will remain on as vice president and general operations manager, added, "We are pleased to have The Andersons carry on our legacy and the relationships we’ve built with our customers and employees. We are confident in the opportunities this acquisition will provide to both our employees and our customers."

The purchase includes a state-of-the-art R&D laboratory and three plant nutrient manufacturing and distribution assets with more than 100,000 tons of tank storage that produce average annual sales of more than 200,000 tons of liquid fertilizers located in Iowa and Nebraska. The animal nutrient portions of Kay Flo have been separated and are not a part of the acquisition.

"In addition to providing extraordinary service to our customers, we expect to grow our national sales and distribution opportunities. This now puts us as one of the largest manufacturers of traditional row starters and the leading manufacturer of specialty nutrients," says Bill Wolf, president of The Andersons’ Plant Nutrient Group.