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Pryor plant back offline

LSB Industries Inc. said today that as part of the company’s safety policy, LSB has determined to take down the anhydrous ammonia plant at its Pryor, Okla., chemical facility due to excessive vibrations in the second stage of the compressor detected by recently installed monitors. The second stage compressor of the ammonia plant has been sent to Sulzer Turbo Services’ Houston, Texas laboratory for high speed testing and diagnosis. At the present time, based on available information, the company expects the ammonia plant at the Pryor facility to be returned to service before the end of January. As previously announced on Dec. 30, 2013, the ammonia plant at the Pryor facility was restarted, after having been down for most of the fourth quarter 2013.

Koch, Helena settle litigation

Koch Agronomic Services, LLC (KAS), a subsidiary of Koch Fertilizer, LLC (KF), and Helena Chemical Company (HCC) said today that litigation between the two companies over intellectual property rights has been settled.

HCC will continue to market both its N-FIXX™ nitrogen stabilizer brands as well as KAS’s AGROTAIN® nitrogen stabilizers. The parties said they look forward to future collaboration on products and services, and believe that joint efforts between the companies will provide value to all users of nitrogen stabilizer products. Details of the litigation and terms of the settlement were not disclosed.

The Week in Fertilizer Stocks

The Week in Fertilizer Stocks


Producer Symbol Price Week Ago Year Ago
Agrium AGU 91.39 91.77 103.04
CF Industries CF 233.69 232.65 207.24
CVR Partners UAN 17.06 16.53 26.00
Intrepid Potash IPI 15.50 15.48 22.03
Mosaic MOS 47.00 46.94 57.51
PotashCorp POT 32.87 32.86 41.31
Rentech Nitrogen RNF 18.01 17.30 38.94
Terra Nitrogen TNH 141.49 147.63 219.50
Distribution/Retail
Andersons Inc. ANDE 87.53 92.32 43.98
Deere & Co. DE 90.26 91.12 87.99
Scotts SMG 61.20 62.01 44.75

Rotem Amfert workers step up sanctions against ICL

Rotem Amfert workers at Ashdod port are preventing the export of phosphates as part of their dispute with Israel Chemicals (ICL) management over ICL’s plans to lay off 127 workers. The sanctions at the Mediterranean port began on Sunday, Jan. 5, and are continuing today. In addition, workers at the company’s production plant in southern Israel prevented non-union workers from entering the plant.

The union has said that it plans to further intensify sanctions following last week’s break down of negotiations with ICL management over a recovery plan. The union charges that ICL has started handing out dismissal notices after the company agreed to freeze plans to lay off workers last month in an attempt to reach an agreement with the union and the Histadrut Labor Federation. Negotiations between the two sides remain deadlocked.

Prior to the resumption of the talks in mid-December, powerful Histadrut chairman Ofer Eini had convinced workers at Dead Sea Works to join the dispute. So far, however, they have stayed clear of taking any action following the announcement last month by ICL management of a restructuring plan.

The change in management’s position followed a lockout at the Rotem Amfert plant in the Negev when initial dismissal notices were handed out to some of the workers. The following day Rotem Amfert management imposed a lock out.

ICL management has said that it must reduce costs at Rotem Amfert. It claims that Morocco, which controls over 50 percent of the global phosphate market, is cutting prices in an attempt to drive rivals out of the market. A spokesman for Rotem Amfert said earlier this week that the company is facing its worst crisis in years due to a sharp drop in phosphate and fertilizer prices that has made the company among the least competitive in the industry. The spokesman added that the layoffs are a painful but necessary measure to enable the company to compete on the international market.

Rentech plant restarts

Rentech Nitrogen Partners LP announced today the completion of all repairs related to the fire that occurred at its East Dubuque, Ill. nitrogen fertilizer facility Nov. 29, 2013. Ammonia production resumed Dec. 29, 2013, and the facility is producing ammonia as expected at a steady rate of approximately 790 tons per day as of Jan. 5, 2014. The LP continues to anticipate ammonia production at the increased rate of approximately 1,020 tons per day by the end of January 2014, upon completion of the previously-announced repairs to the foundation of one of the four syngas compressors.

Rentech Nitrogen reaffirmed its expectation that the lost production due to the fire will have minimal effect on previously forecasted deliveries for 2014, and that the overwhelming majority of the impact on product deliveries occurred in 2013. It also confirmed that it is in the process of submitting insurance claims to cover the full costs of the repairs, and expects to pay a deductible of $1 million.

Authorities levy $230 million tax bill against ICL

Israel Chemicals (ICL) has been slapped with a $230 million tax bill for the years 2009-2011. Israel’s Tax Authority said that it is demanding additional tax payments for the three years because two ICL subsidiaries – Dead Sea Works and Rotem Amfert – were not eligible for certain tax breaks under the Investment Encouragement Law that was amended in 2005.

ICL said in response that it disagrees with the tax bill and that it has a legal opinion from experts that backs its position. The news sent shares in ICL down sharply on the Tel Aviv Stock Exchange.

In March 2011 Israel’s Finance Ministry sued Dead Sea Works for $291 million plus interest for back payment of royalties from the company from the production of potash at the Dead Sea. The royalties are from production for the years 2000-2009. ICL disagrees with the Finance Ministry and the matter is currently in the final stages of arbitration.

Growmark to buy Sylvite/Sylco Lewistown assets

Growmark FS, LLC has announced that it will purchase Sylvite Sales (USA) and Sylco Service and Terminal Co.’s Lewistown, Penn., facilities and business operations. Terms of the sale were not disclosed, however, the transaction is expected to take place in the first quarter of 2014.

“The partners of our companies felt the time was appropriate to pursue avenues that will allow our location to continue its rapid growth curve,” said Jeffrey Stine, Sylvite and Sylco president. “We are excited to be working with individuals in the Growmark FS organization that share our long term commitment to our suppliers and customers.”

“This acquisition is the most strategic move Growmark FS has initiated since its formation in December, 2002,” said Steve Buckalew, CEO, Growmark FS CEO. “Located in the geographical center of our marketing territory, it will allow us to better serve our existing customers and establish new customer relationships.”

Growmark FS is a single member limited liability company owned by Growmark Inc., Bloomington, Ill. Growmark FS, headquartered in Milford, Del., serves approximately 8,000 farmer customers in New York, Pennsylvania, New Jersey, Maryland, Delaware and Virginia. It offers a full line of agronomic products including fertilizers, crop protection products, seed and custom application services.

OCI buys Beaumont ammonia tank

OCI Partners LP, a Delaware limited partnership, has announced that it has acquired a 20,000 mt ammonia tank from Lucite International for additional ammonia storage capacity on-site at Beaumont, Texas.

By acquiring the tank, OCI will have additional ammonia storage capacity and access to an ammonia pipeline. The access to the pipeline will allow OCI the flexibility to switch a larger portion of its ammonia sales via pipeline as opposed to barge providing more flexibility on a need-be basis.

In addition, the acquisition of the ammonia tank will facilitate the installation of ammonia truck and railcar loading capacity which will help diversify OCI’s customer base.

Koch to increase ammonia capacity

Koch Fertilizer Canada ULC has announced plans to move forward with an initial $30 million investment to increase ammonia production and operational efficiencies at its Brandon, Manitoba facility. Koch says the project will include the installation of production equipment and process improvements and provides the foundation for a series of further ammonia projects to increase capacity, which could total 90,000 additional tons annually.

Construction for the project is expected to begin in the second-half of 2014 with completion anticipated in late-2015. In addition to the planned increase in ammonia production, the company is also considering a project that would increase urea production capacity at the Brandon plant.

“This investment in infrastructure and increased capacity supports our continuing efforts to provide value for our customers,” said Scott McGinn, senior vice president, North America, “and we will continue to evaluate further production expansion opportunities.”

For more information, see the Green Markets Web Edition Dec. 20.