SIOUX CITY, Iowa, Dec. 15 /PRNewswire-FirstCall/ -- Terra Industries Inc.
(NYSE: TRA) announces it has sold its sales contracts and rights to the full
output of its Beaumont, Texas, methanol plant for the next five years to
Methanex. Under the terms of the agreement, Terra receives lump-sum payment of
$25 million and will share in a percentage of cash gross profits generated
from Beaumont methanol sales.
Terra's Beaumont facility has an annual capacity of 225 million gallons.
That facility also has an ammonia loop, with an annual capacity of 255,000
tons. Terra retains the rights to the output of the ammonia loop, which can
operate only in conjunction with the methanol plant.
"We're pleased to enter into this mutually beneficial agreement with
Methanex," says Terra President and CEO Michael L. Bennett. "It enables Terra
to focus on our strengths of plant operations and nitrogen products marketing,
and limits our exposure to possible adverse methanol market conditions."
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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