Recent Press Releases
12/21/01
LAP members weather hard year
(Baton Rouge, La.) - The Louisiana Ammonia Producers, a group representing chemical plants in the state that manufacture ammonia, reported in a year-end survey that high natural gas prices, a bad farm economy and an oversupply of ammonia internationally resulted in the permanent closure of an additional plant and a unit at another plant. The closures and other market conditions resulted in more than 200 contract and permanent employees being laid off this year and more than 400 over the past two years.

"Cytec Industries in Jefferson Parish has permanently closed its ammonia facility, and IMC Phosphates has permanently closed its urea unit. The high, $10 natural gas prices in the early part of the year and the economic downturn have severely impacted ammonia operations in Louisiana," LAP spokesman Jim Harris said. Harris indicated that CF Industries, Koch Nitrogen, Farmland and IMC Phosphates shut down operations for between three and seven months of 2001, and all but PCS Nitrogen operated at reduced capacity at various points during the year.

"The prospects for 2002 are uncertain. The continuing effects of last years high natural gas prices, the economic downturn and excess inventory indicate there could be further problems for Louisiana producers. The good news in all of this is that natural gas prices have now declined dramatically," Harris said.

The Louisiana Ammonia Producers are a group of six ammonia producing companies operating seven facilities in the state. Together, they account for 40 percent of the U.S. production of ammonia. LAP members employ nearly 1,500 people. LAP members are CF Industries in Ascension Parish, Farmland in Grant Parish, IMC Global in St. James Parish, Koch Industries in Ouachita Parish and PCS Nitrogen and Triad Nitrogen in Ascension Parish.

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