Koch project to break ground in September

Koch Nitrogen Co. LLC will begin construction in mid-September on a previously-announced $1.3 billion expansion project at its Enid, Okla., facility. The project will be implemented over the next three years and will increase production capacity by more than 1 million tons per year.

The expansion project is comprised of a number of projects, including: Construction of a 900,000 ton-per-year urea plant; efficiency improvements and capacity increases to existing ammonia plants; and added capability to produce high-purity urea to serve the diesel exhaust fluid (DEF) market; construction of high-speed truck and rail loading facilities, complementing the existing access of the Burlington Northern and Union Pacific railroads; construction of an additional 90,000 tons of urea storage capacity; construction of infrastructure to process water discharged from the city of Enid’s wastewater treatment plant, substantially reducing the facility’s use of drinking water; and construction of an electric power substation to supply new power and improve the reliability of existing power to the facility.

“This investment by Koch Nitrogen is one of the largest construction projects in the history of Koch Industries,” said David Robertson, president and chief operating officer of Koch Industries Inc. “It reflects the ongoing growth of our fertilizer business and underscores our commitment to innovation and creating long-term value.”

The project will employ up to 1,000 contractors during the 18-24 months of construction. In addition, 50-60 permanent employees will be added to support the expanded facilities.

“These improvements and additions to our Enid facility will significantly enhance our current operations and allow us to meet our customers’ needs in a more efficient and effective manner,” said Chase Koch, president, Koch Fertilizer LLC. “We appreciate our positive working relationship with the State of Oklahoma, the Garfield County Board of Commissioners, the Enid Regional Development Alliance and the city of Enid. We are looking forward to breaking ground on this important investment.”

The following companies are participating in the project: Black & Veatch, a global engineering, consulting and construction company, is providing project planning, engineering and procurement services; KBR, a global engineering, construction and services company, has been selected to provide urea engineering and procurement services and overall construction management; and Stamicarbon, the global market leader in licensing of urea technology and services, is providing the urea synthesis and granulation technology.

The Koch Nitrogen facility in Enid is one of the largest fertilizer production plants in North America, producing ammonia, UAN (liquid fertilizer) and granular urea. It was built in 1974 and purchased by Koch Nitrogen in 2003. The site currently employs more than 150 people in the fields of engineering, operations and maintenance.

Agrium 2Q down 18 percent

Agrium Inc. reported second-quarter net earnings of $616 million ($4.28 per diluted share) on sales of $7.34 billion down from the year-ago $747 million ($5.02 per share) and $6.91 billion, respectively.

Agrium reported record results for its Retail segment, with earnings before income taxes of $714 million on sales of $6.4 billion, up from $562 million on sales of $5.56 billion. Agrium said the strong results were supported by recent acquisitions in Canada and Australia.

In the meantime, Wholesale EBIT was down at $191 million on sales of $1.2 billion from $465 million and $1.59 billion, respectively.

CF 2Q income off 37 percent

CF Industries Holdings Inc. reported second-quarter net income attributable to common stockholders of $312.6 million ($6.10 per diluted share) on sales of $1.47 billion, down from the year-ago $498.2 million ($8.38 per share) and $1.71 billion, respectively.

Quarter highlights included record ammonia shipments and the company expects a strong fall ammonia application season as well.

CF said first-half U.S. Gulf urea prices were at a $10-$30 per ton premium to international markets, and the strong domestic shipments left inventories low at the end of the season. However, it expects increased Chinese exports to put more pressure on prices during the second half.

CF expects over 90 million acres of corn will be planted in 2015 and expects robust nitrogen demand in second-half 2014.

Also during the quarter, CF had $20 million of idle plant costs related to the unscheduled downtime at the Woodward, Okla., nitrogen plant. In the meantime, CF said during the quarter it made significant strides at its expansion projects at Donaldsonville, La., and Port Neal, Iowa.

CF said its board has authorized a 50 percent increase in the company’s quarterly cash dividend from $1.00 to $1.50 per share, and authorized a $1 billion share repurchase program through Dec. 31, 2016.

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