Terra Industries Inc. Suspends Production at Blytheville facility
Terra Industries Inc. announced today it will suspend ammonia and urea production at its Blytheville, Ark., facility at the end of June 2003. The shutdown is due to expectations that the facility would not cover its cash costs because of continuing high natural gas costs and the seasonal decline in nitrogen fertilizer demand and prices.
The facility will resume production when ammonia and urea selling prices increase and/or natural gas costs decrease to the point where the facility can operate with positive cash flow. The Blytheville facility's ammonia and urea manufacturing capacity represent 14 and 73 percent, respectively, of Terra's total North American ammonia and urea manufacturing capacity. Terra will continue to operate its Blytheville ammonia and urea storage and shipping facilities.
Terra has notified about 60 employees, or nearly 65 percent, of its Blytheville workforce that they will be laid off for an indefinite period, currently expected to last three to five months, depending on market conditions.
Said Terra's President and CEO Michael L. Bennett, "We're extremely disappointed at having to lay off some of our Blytheville employees. However, we continue to hope that a balance of natural gas costs and nitrogen products prices that will allow us to restart production in Blytheville will be achieved within the next several months."
Other news from the department business & finance
