INEOS Nitriles and PCS Nitrogen to conclude Operating Agreement at Lima Site
INEOS Nitriles announced that it has served notice of termination of its operating agreement effective December 31, 2007 with PCS nitrogen Ohio, LP, subsidary of Potash Corporation of Saskatchewan Inc. As of January 1, 2008, PCS Nitrogen will assume operating responsibility for its nitrogen facility at Lima, OH.
The facility is currently operated by INEOS under an operating agreement with PCS Nitrogen. INEOS inherited the operating agreement when it purchased the chemical division of BP in 2005 and has operated the PCS Nitrogen facility since December 16, 2005. The decision to terminate this agreement was made by INEOS Nitriles to focus on the growth and optimization of its core operations at the Lima site.
The Lima facility has the capacity to produce 1.37 million tons of ammonia, urea, nitrogen solutions and nitric acid annually and produced a total of 765,000 tons last year. PCS Nitrogen intends to continue operating this facility as market conditions dictate and is committed to effecting this change in operating responsibilities with no disruption in production or service to its customers.
INEOS and PCS Nitrogen continue to each own approximately half of the Lima Chemicals complex, with each company taking responsibility for its own operations. Over the next nine months, INEOS will continue to have operational responsibility for the facility in accordance with the operating agreement. Both companies are committed to working closely to ensure a smooth transition.
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