Gavilon may be for sale

Gavilon Group LLC, the U.S. grain-storage and fertilizer company, whose largest shareholder is hedge-fund firm Ospraie Management LLC, has hired Morgan Stanley to explore strategic alternatives.

“Gavilon has strengthened and firmly established its position as a leading, global commodity company with a robust pipeline of growth opportunities,” a spokesman told Green Markets. “The company has decided to explore a broad range of strategic alternatives that may further its growth and create additional value for our stakeholders.” Strategic alternatives many times means a possible sale.

Gavilon is a spin-off of ConAgra Foods Inc. Another major Gavilon investor includes Orascom Construction Industries of Egypt.

Orica plant may be down for several weeks

Orica said Jan. 24 that it is not satisfied with the performance of one of the compressors at the Kooragang Island ammonia plant, which will result in a significant delay in the restart process. Orica is currently working with the compressor supplier to address the performance concerns.

Orica will not proceed with the restart of the ammonia plant until it is satisfied that the compressor can perform as designed. Orica anticipates this may take several weeks.

Separately, Orica has successfully restarted the High Temperature Shift Catalyst Vessel, which is the section of the plant that was the source of an emission of hexavalent chromium Aug. 8 last year. This was completed without incident and means that there will be no hexavalent chromium at the plant for the remainder of the restart process.

“We have kept the community updated on the restart of Kooragang Island at important stages of the process and the community’s safety remains absolutely paramount,” said Orica CEO Graeme Liebelt. “Restarting a plant of this type involves a number of important steps and we are completing each step systematically and without compromise.”

Orica said when the restart process recommences, there remains the chance that the community may again see gas flares from the vents. It said there is no risk to the local community, the environment or the plant from gas flares from the vents. It said the byproduct of the gas flares is water.

Orica said ammonium nitrate production remains unaffected. Orica has been importing ammonia to serve it’s AN plant.

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