Terra Environmental signs agreement with Brenntag

Sioux City-Terra Environmental Technologies Inc. (TET), a wholly owned unit of Terra Industries Inc., has signed an exclusive distribution agreement with Brenntag North America. As a result, Brenntag will be the exclusive national distributor of TET’s diesel exhaust fluid (DEF) TerraCair?äó for the on- and off-road diesel motor application market in the U.S. and Canada, and TET will be the exclusive supplier of DEF to Brenntag. TerraCair is an ultra pure, nitrogen-based urea solution that helps clean the air by reducing harmful emissions from the exhaust stream of diesel engines. Terra says the agreement marks a significant first step toward establishing TET as a leading producer and supplier in the emerging North American DEF market. This market is driven by U.S. legislation set to take effect in 2010 that will require new light- and heavy-duty diesel trucks to meet more stringent emissions requirements. The affected diesel engines accomplish this through the use of selective catalytic reduction (SCR) systems in conjunction with DEF. In addition to improving air quality, the technology has the potential to increase fuel economy by three to five percent. TET will supply TerraCair to U.S. and Canadian customers from a number of plant locations directly and through Brenntag’s distribution channels. “We’re pleased to have accomplished with Brenntag this important first step in establishing the North American DEF infrastructure,” said Terra President and CEO Michael Bennett. “Each company brings significant strengths to the table. TET will ensure product quality and supply, and has the resources and expertise to be a leader in the DEF market. Brenntag has a substantial distribution infrastructure, high quality standards, excellent customer service and experience distributing DEF. We look forward to a long and productive working relationship. The agreement is also consistent with Terra’s strategic objective of growing the TET business. Green technology will play an important role in the U.S. economy of the future, and this agreement marks good progress toward positioning TET as a leading producer and supplier to green markets.” Brenntag North America, headquartered in Reading, Penn., is a part of the Brenntag Group, a global leader in the growth market for the distribution of industrial and specialty chemicals.