SIOUX CITY, Iowa, June 26 /PRNewswire-FirstCall/ -- Terra Industries Inc.
(NYSE: TRA) announced today it will suspend ammonia and urea production at its
Blytheville, Ark., facility at the end of June 2003. The shutdown is due to
expectations that the facility would not cover its cash costs because of
continuing high natural gas costs and the seasonal decline in nitrogen
fertilizer demand and prices.
The facility will resume production when ammonia and urea selling prices
increase and/or natural gas costs decrease to the point where the facility can
operate with positive cash flow. The Blytheville facility's ammonia and urea
manufacturing capacity represent 14 and 73 percent, respectively, of Terra's
total North American ammonia and urea manufacturing capacity. Terra will
continue to operate its Blytheville ammonia and urea storage and shipping
facilities.
Terra has notified about 60 employees, or nearly 65 percent, of its
Blytheville workforce that they will be laid off for an indefinite period,
currently expected to last three to five months, depending on market
conditions.
Said Terra's President and CEO Michael L. Bennett, "We're extremely
disappointed at having to lay off some of our Blytheville employees. However,
we continue to hope that a balance of natural gas costs and nitrogen products
prices that will allow us to restart production in Blytheville will be
achieved within the next several months."
Terra Industries Inc., with 2002 revenues of $1 billion, is a leading
international producer of nitrogen products and methanol.
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.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com .
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
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