SIOUX CITY, Iowa, March 31 /PRNewswire-FirstCall/ -- Terra Industries Inc.
(NYSE: TRA) announced today that it plans to discontinue production at its
Blytheville, Ark. nitrogen products manufacturing facility on or about May 31,
2004, and to then prepare the production plants for permanent closure. No
decision has yet been made regarding the sale or demolition of the facility's
production plants. Terra expects to operate the facility's storage and
distribution assets as a terminal for ammonia produced at its Verdigris, Okla.
facility or obtained from other sources.
Terra recorded in the 2003 second quarter a $53.1 million "Impairment of
long-lived assets" charge based on its conclusion that future market
conditions may not justify the ongoing investment in maintenance and
replacement capital necessary to extend operations for the remainder of the
Blytheville facility's useful life. Estimates of total spending required for
the facility's permanent closure range from $3.0 to $4.0 million. Terra has
not yet determined the amount of permanent closure spending it will charge
against 2004 first quarter results of operations.
"We regret that this decision results in the loss of jobs for our
Blytheville employees," said Michael L. Bennett, Terra's President and CEO.
"They quickly restarted production last October and have operated the plants
safely and reliably since then with a reduced staff. We appreciate their hard
work and dedication and will help them seek new opportunities.
"We decided to permanently close our Blytheville production plants now
because of continuing high natural gas costs, the upcoming lull in off-season
nitrogen markets and the likelihood that competition from imported ammonia and
urea barged up the Mississippi River will make future major maintenance and
capital investments at the Blytheville facility unsound," Bennett continued.
"We believe that investments in our other facilities provide better prospects
for returns."
Terra Industries Inc., with 2003 revenues of $1.4 billion, is a leading
international producer of nitrogen products.
This news release may contain forward-looking statements, which involve
inherent risks and uncertainties. Statements that are not historical facts,
including statements about Terra Industries Inc.'s beliefs, plans or
expectations, are forward-looking statements. These statements are based on
current plans, estimates and expectations. Actual results may differ
materially from those projected in such forward-looking statements and
therefore you should not place undue reliance on them. A non-exclusive list of
the important factors that could cause actual results to differ materially
from those in such forward-looking statements is set forth in Terra Industries
Inc.'s most recent report on Form 10-K and Terra Industries Inc.'s other
documents on file with the Securities and Exchange Commission. Terra
Industries Inc. undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.
SOURCE Terra Industries Inc.
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Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/437906.html
CONTACT:
Mark Rosenbury of Terra Industries Inc.,
+1-712-279-8756
NOTE TO EDITORS: Terra Industries' news announcements are also
available on its web site, http://www.terraindustries.com .
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