Agrium finishes sale of fertiliser plant to Rentech

26 April 2006 19:13  [Source: ICIS news]

HOUSTON (ICIS news)--Agrium said on Wednesday that it had completed the sale of Royster-Clark’s East Dubuque, Illinois nitrogen fertiliser plant to Rentech for $70m (Eruo56.3m).

Royster-Clark had agreed to sell the plant to Rentech before the former was acquired by Agrium, a Canada-based fertiliser firm.

Rentech, an alternative energy firm based in the US, will pay $50m in cash plus $20m for associated working capital and inventories, said a spokesman. He said the company had been expecting the total price tag to be $50m-$80m.

Rentech plans to convert the 753 tonne/day natural gas-fed plant to use coal feedstock. It will use a technology that converts coal to gas. Natural gas is the main feedstock for nitrogen fertilisers.

Royster-Clark will be the exclusive distributor for fertilisers made at the plant for agricultural and industrial use in the US.


By: Mark Quiner
+1 713 525 2653



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