LONDON (ICIS)--US fertilizer producer Rentech Nitrogen on Thursday announced the signing of an exclusive long-term supply agreement with Tessenderlo Kerley Inc (TKI) that will see ammonia from its East Dubuque facility used in the manufacture of TKI's sulphur-based liquid fertilizer Thio-Sul.
In a short statement, Rentech said it will also lease property adjacent to the Illinois fertilizer facility to TKI, the North American subsidiary of Brussels-based Tessenderlo Group, for a new plant to manufacture Thio-Sul.
Construction of the plant is expected to begin immediately upon receiving approval of necessary permits, it added, without providing any financial details of the supply contract or lease agreement.
"The agreement creates an exclusive supply relationship for Rentech Nitrogen to provide ammonia to the new TKI manufacturing facility," Rentech said. "Ammonia is a key ingredient in the production of Thio-Sul.""When completed, the new plant will enhance the TKI position as the world's largest producer of sulphur-based liquid fertilizers," TKI said in a separate statement.