Posts By Date - Green Markets

Mosaic cuts phosphate production

The Mosaic Co. said Sept. 30 that it is reducing phosphate fertilizer production, primarily because of high sulfur and ammonia prices. This curtailment will result in lower operating rates at Mosaic’s mines and concentrates plants, but is not expected to result in employee layoffs.

"Phosphate raw material input costs are disconnected from fundamental agricultural economics, and have escalated despite weaker grain and oilseed prices," said Jim Prokopanko, Mosaic’s president and CEO. "In the near term, we will be margin-focused and will limit inventory build-up during the seasonally-slow part of the year.

"Crop nutrients remain affordable for farmers, and we continue to expect a good fall application season in North America and record-setting phosphate and potash global shipments in 2014, followed by another year of growth in 2015," added Prokopanko. "We remain confident about the supply and demand fundamentals for phosphates, especially as large crop harvests remove large amounts of nutrients from the soil."

Mosaic also announced an update of volume guidance for its third calendar quarter 2014. The company now expects potash and phosphate sales volumes to be at or near the lower-end of the previously communicated ranges, primarily as a result of weather-driven production outages in potash, and in part driven by timing of shipments in phosphates. Prices are expected to remain near the midpoints of the prior guidance ranges.

Trammo to merge divisions

September 30, 2014Breaking Industry News, Sulfuric Acidwebster@kennedyinfo.com

Trammo Inc. said Sept. 30 that it will merge its Ammonia and Fertilizers & Commodities divisions into a new division called the Commodities division.

“The merger will allow us to increase synergies, use our global infrastructure to provide a larger portfolio of products, and present ourselves to our customers and suppliers as a company with different products but coordinated activity,” said CEO Henk van Dalfsen. “We believe all of Trammo’s operations will be strengthened by the move.”

Trammo’s Tampa ammonia group, headed by Jeff Minnis, will run the North American business. Trammo’s Paris ammonia group, headed by Christophe Savi, will run the international ammonia business. Mr. van Dalfsen, New York, will oversee the global ammonia business during the merger and the following transition period.

Christian Wendel, present CEO of the Fertilizers & Commodities division, will become CEO of the newly-formed Commodities division. He will be headquartered in Singapore and Zurich.

“We believe Trammo’s ammonia business will thrive in this new structure and complement the success of the other products in the Commodities division,” said van Dalfsen. “We look forward to providing even better service to our customers and suppliers.”

Trammo says it is the world’s leading independent marketer and transporter of anhydrous ammonia, with its 2013 ammonia trade at 2.8 million mt with revenues of $1.5 billion. It purchases ammonia from nearly 50 suppliers located in 14 countries and sells to customers in 33 countries. It controls a fleet of eight gas tankers of varying capacities. It has product available at four terminals in the U.S. and delivers by barge, railcar and truck. It owns an ammonia terminal in Illinois and operates and owns propane storage and distribution facilities in New Hampshire and Florida.

Trammo, formerly known as Transammonia, was founded in 1965, and is a global merchandising and trading group that markets, trades and transports fertilizer and commodities, including sulfur, sulfuric acid, petroleum coke, coal, rice, ammonia, LPG and petrochemicals. During 2013, Trammo said sales consisted of 41.8 million mt of all products with revenues of $11.3 billion.

Trammo employs more than 455 people operating offices in 33 cities around the world.