SIOUX CITY, Iowa, March 31 /PRNewswire-FirstCall/ -- Terra Nitrogen
Company, L.P. (TNCLP) (NYSE: TNH) announced 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. TNCLP 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.
TNCLP recorded in the 2003 second quarter a $40.7 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
Blytheville's permanent closure range from $3.0 to $4.0 million. TNCLP 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, President and Chairman of the
Board of Terra Nitrogen Corporation, TNCLP's General Partner. "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,"
Bennett continued, "because of continuing high natural gas costs, the upcoming
off-season lull in 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."
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
fertilizer products.
Information contained in this 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
nitrogen fertilizer selling prices 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 Performance" section of TNCLP's current
annual report.
SOURCE Terra Nitrogen Company, L.P.
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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 Nitrogen Company,
L.P., +1-712-279-8756
NOTE TO EDITORS: Terra Nitrogen Company, L.P. news announcements
are also available on Terra Industries' web site,
http://www.terraindustries.com .
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