By OGJ editors
HOUSTON, July 1 -- Terra Industries Inc., Sioux City, Iowa, suspended ammonia and urea production at its Blytheville, Ark., facility the end of June, blaming high natural gas costs and the seasonal decline in nitrogen fertilizer demand and prices.
Terra said the facility would resume production when ammonia and urea selling prices increase 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%, 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.
"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," said Terra's Pres. and CEO Michael L. Bennett.
Terra Industries had 2002 revenues of $1 billion.
