Los Angeles — Rentech Inc. on Feb. 28 announced major cuts in its energy research and development business, as the company continues to focus on other energy businesses as well as its profitable nitrogen business. Rentech plans to cease operations at, reduce staffing at, and mothball its research and development (R&D) Product Demonstration Unit (PDU) in Commerce City, Colo., and eliminate all related R&D activities. The company’s strategy is focused on more immediate growth opportunities within the energy industry that do not rely on new technologies. “Our success in growing Rentech Nitrogen and generating attractive returns from that business is the best example to date of the disciplined investment approach that we will follow as we consider additional investment,” said D. Hunt Ramsbottom, Rentech president and CEO. Rentech will eliminate 65 employee and contractor positions in the company’s alternative energy segment during the first half of 2013. It will attempt to sell the PDU, as well as approximately 450 acres of land in Natchez, Miss., it acquired for the development of an alternative energy facility. Rentech expects to incur a one-time non-cash impairment charge to intangible assets related to its technology of approximately $16 million in its financial statements for the period ended Dec. 31, 2012.
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