Agrium suspends nitrogen projects as rivals race to build

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

Canadian fertilizer company Agrium Inc. stepped back from two projects that would have expanded its capacity to make nitrogen-based fertilizer, partly because numerous competitors are pursuing similar plans.

Agrium, the world's third-largest nitrogen producer, said on Monday that it would suspend engineering work on a proposed $3 billion plant in the U.S. Midwest. Instead, it will focus on finding a partner to share the capital cost and securing a long-term natural gas contract for the project.

The news came as many rivals said they planned to add nitrogen capacity in the United States, where a greater supply of natural gas - a key ingredient in nitrogen fertilizer - makes production more profitable.

The other projects include expansion in Louisiana and Iowa by CF Industries Holdings Inc and a new plant in Iowa planned by Orascom Construction Industries SAE.

Fertilizer company executives and analysts have long said that they do not expect all of the projects to proceed.

Agrium investor relations director Todd Coakwell said the many similar projects in the works and the uncertainty of long-term natural gas costs caused the company to pull back from plans for the new plant, which would have produced up to 1.8 million tonnes annually.

He said Agrium was also suspending expansion plans for its Redwater, Alberta, nitrogen plant, and the company continues to aim for a final decision on the expansion of its Borger, Texas, plant in the second half of 2013.

The company will focus on completing expansion of its Vanscoy, Saskatchewan, potash mine through 2014, Coakwell said.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (0) Leave a comment 

e-Mail (required)


characters left

Kinze 1500 Grain Cart

The Kinze 1500 Grain Cart is engineered for speed and reliability required of custom harvesters. Load up to 1500 bushels ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form