Koch Nitrogen Enters into an Agreement with Dyno Nobel to Produce UAN
WICHITA, KAN. - Koch Nitrogen Company has entered into a multi-year UAN off-take agreement with Dyno Nobel. Koch Nitrogen will supply the ammonia necessary to produce the UAN and retain exclusive rights to market 100 percent of the UAN, estimated at 290,000 short tons per year, out of Dyno Nobel's ammonium nitrate manufacturing facility in Cheyenne, Wyoming.
“This agreement combines the capabilities of the two companies to add value by bringing fertilizer to the Western United States agricultural market,” said Steve Packebush, president of Koch Nitrogen. “This opens a new region for our company, allows us to better serve new and existing customers and is a win-win for both operations.”
“The agreement with Koch Nitrogen gives Dyno Nobel a reliable source of ammonia and enables us to swing production to meet strong fertilizer demand,” said Peter Richards, Dyno Nobel chief operating officer. “We will also benefit from Koch Nitrogen's extensive marketing expertise and distribution networks.”
Production is expected to begin in the third quarter, 2008. Koch Nitrogen and its affiliates produce, distribute and globally market nitrogen fertilizers, including anhydrous ammonia, urea, nitric acid, UAN solutions, ammonium nitrate solution, ammonium polyphosphate and ammonium thiosulfate.
The companies' fertilizer interests have the capability of producing about 8 million metric tons of nitrogen products annually. Koch Nitrogen is an indirect, wholly-owned subsidiary of privately held Koch Industries, Inc. (www.kochind.com), based in Wichita, Kan.
Dyno Nobel (ASX – DXL) is a leading supplier of industrial explosives and blasting services to the mining, quarrying, seismic and construction industries. Dyno Nobel is the market leader in North America - the largest explosives market in the world - and the second largest supplier in Australia - the third largest explosives market in the world.
Dyno Nobel employs more than 3,500 people and has 36 manufacturing facilities in Australia, Canada, the US, Indonesia, Mexico and Papua New Guinea. Dyno Nobel is renowned for its excellent safety performance and as a provider of innovative explosive products and services, which together deliver groundbreaking performance for its customers.
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