All Posts from December 15, 2014

British Columbia eyes NH3 plants

News, News Briefs

New York City — British Columbia Premier Christy Clark, in an interview with Bloomberg Dec. 10, said Indian officials are interested in siting projects to convert natural gas into ammonia in British Columbia. She added that the Chinese want to convert gas to methanol to make fuels, paints, and polyester. Ethylene is another contender. Clark said plan A is to get the province into the LNG export business, and she is confident three terminals will be built by 2020. Plan B, which she said is running concurrently, is to create ancillary businesses to use gas for other products.

Rentech Inc. – Management Brief

Management Briefs

Rentech Inc. announced Dec. 10 that D. Hunt Ramsbottom has resigned as CEO and president of Rentech and CEO of the general partner of Rentech Nitrogen Partners LP to pursue other opportunities. Ramsbottom has also resigned as a member of the board of directors for both companies.

Keith Forman, a member of Rentech Nitrogen’s board since October 2011, has been appointed as CEO and president of Rentech and CEO of the general partner of Rentech Nitrogen. He has also joined the board of Rentech. Rentech says Forman has an extensive background in master limited partnerships (MLPs) and has worked with MLPs in a variety of roles, including as a banker, a senior executive, and a director since the inception of MLPs in the 1980s. Forman previously served as chief financial officer of Crestwood Midstream Partners LP, a private investment partnership focused on making equity investments in the midstream energy market. He also served as senior vice president for El Paso Corp., a publicly traded provider of natural gas services, and chief financial officer of GulfTerra Energy Partners LP, a publicly traded MLP acquired by Enterprise Products Partners LP. He currently serves on the board of Capital Product Partners LP, a publicly traded shipping MLP.

“The board of directors thanks Hunt for his leadership over the past nine years. Hunt spearheaded many successful transitional phases of the company, including the initial public offering of Rentech Nitrogen, the wind-down of the company’s alternative energy business and entry into the wood fiber business,” said Halbert Washburn, chairman of the board of directors.

U.S. Nitrogen reports sabotage; hearing delayed

News, News Briefs

Mosheim, Tenn. — U.S. Nitrogen Co. LLC (USN) reported that a cofferdam, a temporary enclosure that diverts water away from its Nolichucky River construction site, was purposefully cut, allowing water to rush into the area. No one was injured, and no major machinery was damaged. The incident was reported by Greene County deputies Dec. 3. They have been contracted to provide security for the site and pipeline. USN is in the process of building dual 12-mile pipelines to the site – one to access water, the other to dispose of wastewater. In other news, the Greene County Chancery Court delayed a Dec. 8 hearing until Jan. 20 in order to gather additional information. There are currently three suits that have been filed in an effort to halt the pipeline. One challenges the zoning of the USN plant, which will make liquid ammonium nitrate.

Alaska moves ahead with Agrium air permit

News, News Briefs

Juneau — The State of Alaska has issued a draft air quality permit for Agrium Inc.’s proposed nitrogen plant restart on the Kenai Peninsula (GM Jan. 20, p. 1). Public comments will be taken through Jan. 2. However, Agrium reiterated last week that it is yet to pull the trigger on whether to restart the plant, which it idled in 2007 due to a lack of natural gas. Agrium’s renewed interest has come as a result of increased gas exploration in the area. The company is waiting to see if enough gas will be available to warrant the restart. While there has been a flurry of gas activity in the past few years, observers now speculate that a downturn in oil and gas prices might lead to less gas drilling in 2015.

Eco Agro, Hocking announce joint venture

News, News Briefs

Sarasota — Eco Agro Resources and Hocking International Laboratories, San Marcos, Calif., have announced a joint venture that adds Hocking agricultural products to the Eco Agro portfolio and locates manufacturing of existing Eco Agro nitrogen stabilizer products at the Hocking network of strategically located production facilities. In addition to its San Marcos headquarters, Hocking also has locations in Sylacauga, Ala., and York, Penn. Eco Agro said its production campaign for the 2015 season will soon be underway at the jv facilities. Shipments will begin before the end of 2014. Eco Agro was formed in 2013 and sells enhanced efficiency fertilizer products. Hocking, founded in 1976, is a chemical company with manufacturing expertise and facilities strategically located around the country. “The arrangement immediately increases production capacity to meet the rapidly growing demand for our unique nitrogen stabilizer products N Yield and N-bound,” said Andrew Semple, Eco Agro CEO. “Our joint venture with Hocking International provides world-class manufacturing capacity, starting at 3 million gallons per year, with additional scale up capacity available without delay. It also permits further expansion of our product line with N-Still slow release nitrogen and expertise to help us scale up production of Phos Gain phosphorus enhancer.” Eco Agro also gains additional agricultural products from Hocking that will allow it to expand its product offerings into micronutrients and additional performance enhancing products. The jv allows Hocking to further penetrate the agricultural markets and increase utilization of existing production capacity. “A transaction of this magnitude is certainly something for all parties to get excited about,” said Doug Hocking, CEO. “This new venture is going to accelerate full production potential for both Eco Agro Resources and Hocking International as well as facilitate maximum exposure for both organizations. … This relationship allows both organizations to leverage their strengths in a mutually beneficial business structure. Hocking International specializes in the manufacturing processes, while Eco Agro Resources provides the sales and marketing team together with clients in 14 countries to ensure worldwide distribution.”

FoxFarm expanding to $7 M S.C. location

News, News Briefs

Columbia, S.C. — California-based FoxFarm Soil and Fertilizer Co., a family business specializing in potting soils and natural and organic dry and liquid fertilizers, is committing nearly $7 million to locate a new facility in Pendleton, S.C. The facility will create 27 jobs, with hiring expected to start in January. The South Carolina Department of Commerce reported that the new location will include the construction of 60,000 square-foot facility to house the company’s manufacturing and packaging operations. Founded in 1985 and headquartered in Samoa, Calif., FoxFarm says its products are available in local retail establishments in every state, including 14 locations in South Carolina. On its website, FoxFarm touts its hand-crafted natural and organic soil mixes, fertilizers, and micro-brewed liquid plant foods. Main fertilizer ingredients are listed as earthworm castings, bat and bird guano, rock phosphates, and various meals – kelp, alfalfa, feather, fish, crab, and shrimp.

Brandt, Verdesian sign distribution agreement

News, News Briefs

Springfield, Ill. — Brandt said on Dec. 8 that it has signed a new distribution agreement with Verdesian Life Sciences LLC, Cary, N.C. It grants Brandt the exclusive right to sell and market Verdesian’s patented Steric chemistry in the Turf and Ornamental and eastern U.S. agricultural markets under the Brandt Reaction® product line name. In addition, Brandt will market a number of other key Verdesian products from the legacy Northwest Agricultural Products portfolio (excluding Washington, Oregon, Idaho, Nevada, Utah, Montana, and Wyoming). The distribution agreement is effective immediately. Products will be available at select retailers and distributors throughout the U.S. Brandt currently sells and markets Brandt Sterics in the western U.S. The company said Brandt Sterics have a strong following in the west, and that product demand is continuing to expand south and east. It says the chemistry improves nutrient uptake and efficiency of phosphorus, potassium, and sulfur by delaying the reaction and tie up of nutrients in the soil so they remain available to the plant for a longer period of time. It says they are especially beneficial in high alkaline and acidic soils where nutrient tie up is common.

Central Garden reports improved results

News, News Briefs

Walnut Creek, Calif. — Central Garden & Pet reported improved results for the fourth quarter and year ending Sept. 27, 2014. The company had a fourth-quarter loss attributable to the company of $4.1 million ($0.08 per diluted share) on sales of $374.2 million, an improvement over the year-ago loss of $22.6 million ($0.47 per share). Central said fourth-quarter operating for the Garden segment was $6.4 million, up from the year-ago loss of $30.8 million. Sales were $157 million, up 6 percent. For the full-year, Central made it back to the plus column with net income of $8.8 million ($0.18 per share) on sales of $1.6 billion, up from the year-ago loss of $1.93 million ($0.04 per share) and $1.65 billion, respectively. Fiscal 2014 results were negatively impacted by a $16.9 million charge related to the discontinuance of two Garden products introduced in the spring of 2013 and benefited from a $4.9 million gain on the sale of plant manufacturing assets recorded in the third and fourth quarters. Fiscal 2013 results included the $11.2 million Garden charge for discontinued products and a $7.7 million goodwill impairment charge. The Garden segment posted fiscal 2014 sales of $830.2 million, down from the prior year’s $846.2 million. Within the segment, garden controls and fertilizer sales were $262.5 million, down from $274.9 million.

PhosAgro to build AS plant

News, News Briefs, Sulfuric Acid

Moscow — PhosAgro said Dec. 8 that it has signed a contract for the design, delivery, and assembly of equipment for a new 300,000 mt/y ammonium sulfate production line at PhosAgro-Cherepovets with the German company GEA Messo P.T. PhosAgro subsidiary Mining and Chemical Engineering will do initial engineering and design work for the new production capacity. Messo said the AS line will use a crystallization process and will have the largest individual capacity in the world. PhosAgro said AS is an important component of NPK and NPKS fertilizers, including for niche products sold to premium markets. PhosAgro is currently the largest consumer of AS in Russia and purchases product from various chemical and metallurgical plants. The new line, expected to be up in 2017, is designed to make PhosAgro self-sufficient in AS. It will utilize sulfuric acid and ammonia produced at the Cherepovets site. Total investments, including project engineering work, delivery and assembly, are expected to amount to over RUB 2.7 billion. PhosAgro plans to finance the project with its own funds and through borrowings. The new facility will create 30 new jobs. Construction of the new the line is part of PhosAgro’s strategy to 2020, which includes development of the company’s resource base and processing facilities. Under this strategy, in addition to the AS, PhosAgro-Cherepovets will gain a new 760,000 mt/y ammonia production facility, a new 500,000 mt/y granulated urea line, as well as expanded complex fertilizer capacities. PhosAgro plans investments of over US$1.07 billion into developing its chemical production capacities.

Agricultural Retailers Association – Management Brief

Management Briefs

The Agricultural Retailers Association (ARA) announced numerous awards and appointments at its annual conference and expo in New Orleans Dec. 2-4. The Jack Eberspacher Lifetime Achievement Award, ARA’s highest individual honor, went to John Nienas, former strategic accounts lead for Monsanto. The ARA Distinguished Service Award went to Paul Derig, environmental, health and safety manager for J.R. Simplot Co. The Agco Operator of the Year Award went to Brent Klein of Simplot Growers Solutions in Ashton, Idaho.

Several ag retail businesses were also honored. The Ag Retailer of the Year Award, sponsored by Monsanto, went to NEW Cooperative Inc. of Fort Dodge, Iowa. The regional, national, and international Environmental Respect Award winners for 2014 were announced as well, with the U.S. national award going to Centennial Ag Supply Co. of Yuma, Colo. In addition, the conference featured a new AgProfessional Precision Impact Award, which went to three regional winners: Southern States Latta Service in Dillon, S.C.; Central Valley Co-op in Owatonna, Minn.; and Wheat Growers in Aberdeen, S.D.

ARA also used the venue to introduce incoming ARA Chairman of the Board Dave DuFault, vice president and general manager of J.R. Simplot Co.’s retail business, and to thank outgoing chairman Gary Farrell of Ag Enterprises Supply Inc., Spokane, Wash. Dufault has served on the ARA board of directors since 2010, and is also on the board of directors for the Western Plant Health Association and the Tenkoz organization.

Both DuFault and Farrell noted the rollout of ResponsibleAg, the fertilizer storage and handling compliance initiative launched earlier this year, as a key achievement and ongoing priority. “One of the biggest items we have to accomplish is taking ResponsibleAg beyond our agribusinesses,” Dufault said. “We need to take this opportunity to improve agricultural retailers’ image in the general public.”

ARA announced nine new board members to fill vacancies left by outgoing directors. The new members include John Demerly, Dow Agrosciences; Jim Fargo, Centennial Ag; Brian Harrington, Carolina Eastern Vail Inc.; Todd Hudelson, Mid Valley Ag; Troy Johnson, Wilbur-Ellis; Ian McGregor, The McGregor Company; Brooke McMullin, International Raw Materials; Gary Vogen, Yara North America; and Tim Witcher, Greenpoint Ag.

Disclaimer of Warranty
All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.

For additional details visit our Terms of Use.