Rapidly escalating natural gas costs claimed another casualty in the fertilizer industry on Thursday as Mississippi Chemical Corp. announced the shut-down of its Donaldsonville, LA, nitrogen complex. While the price of natural gas, a feedstock for some chemicals, continues to climb, there has not been a corresponding rise in chemical and fertilizer prices, and much of the nation’s fertilizer production has moved overseas.

Mississippi Chemical said high gas prices and the closure of Melamine Chemicals Inc., the Donaldsonville facility’s largest industrial customer for urea melt, resulted in continuing losses from the operation. Employees at the urea facility were notified that the facility would be permanently shut down during the first quarter of 2003. About 40 employees will be affected. The company’s Donaldsonville complex has an annual capacity to produce 1 million tons of ammonia and 578,000 tons of urea synthesis. A majority of the urea synthesis production was used to produce 396,000 tons of prilled urea.

“This environment, which has continued now for several years, does not lend itself to easy decisions,” said Mississippi Chemical CEO Charles O. Dunn. “It is unfortunate that we are faced with having to make these choices, but we have to do what is necessary for the continued well-being of the company. We have always valued our employees highly and will try to assist them as best we can during their transition. As we move forward, we will continue to evaluate additional changes at all of our facilities that will result in a more competitive company in this challenging environment.”

Mississippi Chemical produces and markets all three primary crop nutrients. Nitrogen, phosphorus and potassium-based products are produced at facilities in Mississippi, Louisiana and New Mexico, and through a joint venture in The Republic of Trinidad and Tobago.

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