Agrium to shed California UAN plant

(Dave Bedard photo)

Fertilizer and ag retail firm Agrium plans to sell off its fertilizer upgrading plant in northern California.

The Calgary company announced Thursday it “intends to divest” the West Sacramento plant sometime this year. On average, over the past couple of years, the plant has produced about 200,000 tonnes of nitrogen solution products, Agrium said.

Agrium also operates a nitrogen solutions upgrading plant at Kennewick, Wash., about 1,100 km north, with capacity to produce about 430,000 tonnes per year.

Agrium noted the West Sacramento site has access to tidewater and imports its raw materials to make UAN (urea/ammonium nitrate) solutions for the California market. The company has previously pegged the West Sacramento plant’s capacity at 204,000 tonnes.

Both the West Sacramento and Kennewick plants came to Agrium in 2000 when it bought the fertilizer business of U.S. fuel company Unocal, now part of Chevron.

The decision to sell the plant stems from the company’s previously-announced portfolio review, Agrium said, and mpacts on the company’s financials are “expected to be negligible.” — AGCanada.com Network

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