SIOUX CITY, Iowa, Aug. 9 /PRNewswire-FirstCall/ --
Terra Industries Inc. (NYSE: TRA) announced today that it has contracted
to provide technical services and more than 25,000 tons of nitrogen in the
form of anhydrous and aqua ammonia, urea and urea liquor, to electricity
producers in 2002. Terra representatives further stated that they expect this
volume to double in 2003, and that they have set a goal to sell more than
150,000 tons to electricity producers and chemical companies in 2005.
This emerging opportunity is in part the result of a 1990 amendment to the
Clean Air Act, which requires fossil fuel-based industries such as power and
chemical plants to meet certain emissions standards by specified dates. They
do so by installing selective catalytic reduction (SCR) or non-selective
catalytic reduction (NSCR) equipment, which uses ammonia to reduce emissions
of nitric oxides-NOx. Power and chemical companies are beginning the cleanup
process to meet standards that will be mandatory in 2003.
Said Michael Bennett, Terra President and CEO, "Our objective is to seize
opportunities that offset the cyclical nature of our agricultural-related
earnings stream. While Terra will continue to focus on agricultural sales, we
see deeper penetration into this market as promising for its potential
contribution to the company's overall results."
Terra's core business is to supply nitrogen fertilizer products to
agricultural customers, but the company also sells anhydrous ammonia,
methanol, nitric acid, liquid carbon dioxide and urea to industrial customers
in North America and the United Kingdom.
"Ag sales are largely seasonal," noted Joe Giesler, Terra's Global
Director, Industrial Sales. "Industrial sales provide steady product movement
and cash flow during the ag off-season, and relieve Terra of total dependence
on agricultural markets.
"Terra is uniquely suited to serve this market, either directly or through
established distributor networks," Giesler continued. "We operate eight
manufacturing facilities in North America and the U.K., and our facilities are
well-positioned to supply these customers reliably. But Terra brings much
more to the table; we have technical expertise in reducing NOx emissions
because we use SCR equipment and processes similar to those of our customers
in the energy business. Our customers realize a cost advantage by involving
Terra in the design and setup of their facilities, and we can provide ongoing
technical support in terms of safely storing and handling the products we
supply."
Energy companies contracting with Terra for products and/or services in
2002 are Associated Electric Cooperative, Inc. in New Madrid, Mo.; Wartsila,
near Denver, Co.; Detroit Edison in Monroe, Mich.; Dynegy, near St. Louis,
Mo.; and Ontario Power Generation in Sarnia, Ont., among others.
Terra Industries Inc., with 2001 revenues of $1 billion, is a leading
international producer of nitrogen products and methanol.
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,
sales 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 agricultural regulations, and other risks
detailed 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 , and by fax at no charge by calling
800-758-5804, code 437906.
SOURCE Terra Industries Inc.
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Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/437906.html
CONTACT:
Kim Mathers for Terra Industries Inc.,
+1-712-233-6411, or kmathers@terraindustries.com
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