All posts by webster@kennedyinfo.com

One dead, two injured at NH3 plant – Alert

One worker was killed and two individuals suffered minor injuries Jan. 8 in an explosion at Green Valley Chemicals. The injured were treated at the scene and did not go to the hospital. Creston Fire Chief Todd Jackson told Green Markets that a pipe burst in the heating system as the company was trying to increase the heat to the building. He said damage to the facility was minor.

Jackson said ammonia was not being produced at the time of the incident and that the explosion had nothing to do with the ammonia production system. There was no ammonia release.

According to its website, Green Valley is one of the smallest anhydrous ammonia production facilities in the U.S. and has an average production rate of 100 st/d. It has been producing since 1966.

Chorlton to head Midwest Fertilizer – Alert

Midwest Fertilizer Co. LLC said Jan. 8 that Mike Chorlton, who served as the owner’s representative since 2013, will be president and CEO of the company.

Chorlton who headed Saskferco Inc. for seven years, has worked in Indiana since 2013 on the development of the $2.6 billion fertilizer manufacturing project in Posey County. Midwest’s major backer is the Fatima Group of Pakistan.

Midwest is now eyeing a first-quarter 2015 groundbreaking for the project.

Midwest also said that it has enjoyed tremendous support in Southwest Indiana and the incentives offered by Posey County are critically important to making this project a reality. As a result, Midwest said it has withdrawn its request with the Indiana Economic Development Corp. for state incentives which were modest relative to the size of the project.

Midwest Fertilizer will devote its efforts to supporting Posey County in securing state funding for its Western Bypass, a road around Mount Vernon. According to Chorlton, this infrastructure has been needed for many years and it will benefit residents and businesses in the area, including Midwest Fertilizer.

For more information, see the Green Markets Web-Edition Jan. 9.

Haifa reports potash shortage – Alert

Haifa Chemicals management has warned that it will be forced to put all of its workers on forced leave due to a shortage of potash. The company said that it would do so at the end of the week unless supplies reach its two plants in Mishor Rotem and Haifa. A Haifa spokesman said that both plants are continuing production but at a reduced rate. He stressed that so far sales have not been impacted due to inventories.

Haifa Chemicals which produces potassium nitrate is totally dependent on Israel Chemicals Ltd.’s subsidiary Dead Sea Works for supplies. Workers at Dead Sea Works have been imposing sanctions which have included the prevention of potash leaving the Sdom plant as part of a protest against ICL management’s plans to lay off 150 workers at the subsidiary.

Haifa Chemicals workers held a protest against the planned shutdown of the plants in an attempt to get potash shipments resumed. The workers charge that shipments of potash to other ICL subsidiaries have not been affected. A union leader at Dead Sea Works said shipments to Haifa Chemicals were continuing on a limited basis. Haifa Chemicals claims that the situation is costing it millions of dollars.

Haifa Chemicals management has also requested that Israel’s Anti-Trust Commissioner David Gilo take action and instruct ICL to supply the necessary raw materials and check into its alleged use of its monopolistic powers at the expense of Haifa Chemicals.

Agrium to sell Niota and Meredosia assets – Alert

Agrium Inc. said Jan. 6 that it has entered into a definitive agreement to sell its Niota and Meredosia storage and distribution facilities in Illinois to subsidiaries of Trammo Inc. The sale price is approximately $50 million. The sale is related to the discontinuation of Agrium’s North American purchase for resale business, a decision that was made as part of Agrium’s recent portfolio review process. The transaction is subject to customary closing conditions, final purchase price adjustments and regulatory clearances and is anticipated to close by the first quarter of 2015.

"We are very pleased with the value received for the Niota and Meredosia assets. This is another step towards simplifying our portfolio and focusing on our core businesses which will drive long-term shareholder value," commented Chuck Magro, Agrium’s president and CEO.

The Week in Fertilizer Stocks

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 95.12 95.84 91.44
CF Industries CF 273.52 259.36 231.82
CVR Partners UAN 9.13 8.97 15.89
Intrepid Potash IPI 14.12 13.42 15.79
Mosaic MOS 46.12 45.21 47.01
PotashCorp POT 35.75 35.27 32.88
Rentech Nitrogen RNF 9.84 9.46 17.25
Terra Nitrogen TNH 104.39 95.15 142.78
Distribution/Retail
Andersons Inc. ANDE 54.37 52.39 90.42
Deere & Co. DE 89.46 89.54 90.82
Scotts SMG 62.67 62.88 62.27

ICL plans lock out – Alert

Israel Chemicals Ltd. management is planning a lock out at Dead Sea Works due to ongoing sanctions by the company’s workers. The latest round of sanctions were imposed in the past few weeks and ICL says they have already caused significant damage.

ICL management has requested permission from Israel’s Economics Ministry for the lock out and is waiting for a final approval before going ahead with the plan to shut down the plant for an indefinite period of time in response to the workers’ sanctions.

The sanctions have the backing of the Dead Sea Works’ union as well as the Histadrut Labor Federation. The sanctions have prevented the shipment of potash from the Sdom plant as well as affecting maintenance of equipment.

The sanctions were imposed by the union following a demand by management to lay off 150 workers at Dead Sea Works, approximately 10 percent of the subsidiary’s manpower. ICL has accused the union of dragging its feet in the negotiations to implement the reorganization plan