SIOUX CITY, Iowa, March 5 /PRNewswire-FirstCall/ -- As reported on
February 27, 2003, Terra Industries Inc. (NYSE: TRA) has ceased production at
and has placed on standby its Blytheville, Ark., and Woodward, Okla.,
facilities due to high natural gas prices. In addition, Terra has reduced
ammonia and methanol production rates at its other North American facilities.
Current production levels represent about 50, 70, 30 and 75 percent of
Terra's North American ammonia, UAN, urea and methanol manufacturing capacity,
respectively. The facilities can resume full production within two days when
natural gas, nitrogen products and/or methanol price changes result in
positive cash flow from the additional production. Similarly, production can
be ceased at Terra's operating facilities within one day if natural gas,
nitrogen products and/or methanol price changes adversely affect the cash
flows of those facilities' production.
Natural gas prices in the United Kingdom have been stable and Terra's two
U.K. facilities are operating at or near capacity.
Michael L. Bennett, Terra's President and Chief Executive Officer, said,
"During this period of volatile natural gas prices, our main objectives are to
meet our customers' requirements and protect Terra's financial position. We
have adequate supplies to fulfill our existing sales commitments. However, we
need to produce additional product if we are going to supply our agricultural
customers' storage refill requirements. Consequently, we plan to resume full
production as soon as natural gas costs and/or market prices of Terra's
products permit."
Terra Industries Inc., with 2002 revenues of $1 billion, is a leading
international producer of nitrogen products and methanol.
Information contained in this news release, other than historical
information, may be considered forward-looking. Forward-looking information
reflects management's current views of future events and financial performance
that involve a number of risks and uncertainties. The factors that could cause
actual results to differ materially include, but are not limited to, the
following: changes in financial markets, general economic conditions within
the agricultural industry, competitive factors and price changes (principally
selling prices of nitrogen and methanol products and natural gas costs),
changes in product mix, changes in the seasonality of demand patterns, changes
in weather conditions, changes in governmental regulations and other risks
described in the "Factors That Affect Operating Results" section of Terra's
current annual report.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com .
SOURCE Terra Industries Inc.
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