Recent Press Releases
6/11/02
LAP members continue to struggle with difficult market conditions
BATON ROUGE, LA---Members of the Louisiana Ammonia Producers (LAP), a group representing chemical plants that manufacture ammonia, continue to face difficulties under adverse market conditions.

In the past few years, Louisiana ammonia plants have shut down or cut production repeatedly to curb high operating losses caused by high prices for natural gas, ammonia’s main ingredient. Another contributing factor to the weak ammonia market has been the rising levels of foreign imports, which have caused surplus inventories.

Three Louisiana ammonia facilities, Monsanto, Borden, and Cytec, have discontinued ammonia production. In addition, Koch Nitrogen announced the elimination of 32 jobs at its ammonia plant in Sterlington, La. in early May. Production at the plant has been cut by more than half in recent years. Koch’s announcement followed one in late March from Farmland Industries announcing the elimination of 28 jobs at its Pollock, La., plant in Grant Parish.

Farmland’s plant has been idle since October of last year, and is also engaged in ongoing discussions on future options for the site. The company has also announced recently it has filed for Chapter 11 bankruptcy protection and that it will maintain current operations through the reorganization. Grant Parish will feel the effects of the potential closing according to parish officials, since the company is a major taxpayer. "To a small parish like Grant, it’s a big loss," said Grant Parish Assessor Mark Newton.

"In 1998 there were nine LAP member companies employing more than 3,500 employees," said Jim Harris, LAP spokesman. "Today only six companies remain, employing less than 1,500 employees." Harris said that high natural gas prices, the economic downturn and excess inventory have created severe problems for Louisiana ammonia producers. He added that the recent spike in natural gas prices has created additional concern in the industry.

Natural gas makes up 90 percent of the costs of making ammonia. More than 80 percent of the ammonia produced in Louisiana is used to make fertilizer.

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

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