Geneva Nitrogen AN plant to halt production in Utah
The board of directors of Geneva Nitrogen LLC announced on Aug. 29 that the company’s two joint venture stakeholders – Austin Powder Co. and Orica USA Inc. – have decided to halt the production of industrial grade ammonium nitrate and nitric acid at Geneva’s plant in Vineyard, Utah, due to a “challenging mining market” and reduced demand for AN.
The plant has been operating as a 50/50 joint venture between Orica and Austin Powder since 2005, when Austin Powder purchased its 50 percent stake from Dyno Nobel Inc. Capacity levels at that time were estimated at 110,000 st/y of AN and 92,000 st/y of nitric acid.
“The reduced output and future production demand continues to have a negative effect on our facility,” said Steve Thompson, Geneva Nitrogen vice president and general manager. “We will be converting the site to a transload facility in early October, which will continue to provide bulk products shipped in by rail for distribution to local customers.”
Current staffing levels for approximately 32 employees will be reduced as a result of the decision, the company said. A small number of employees will be retained to assist with the decommissioning of the plant and to operate the transload facility.
“We are working closely with our employees to assist them during this transition,” Thompson said. “As always, the safety of our employees and the community remains the most important aspect of our operations.”