IMC-Agrico Curtails DAP Production

In response to a slowdown in international demand for diammonium phosphate (DAP), IMC-Agrico Company plans to curtail production at its phosphate crop nutrient manufacturing facilities.

Effective immediately, the company is reducing phosphoric acid operating rates at its Louisiana and Florida facilities. In conjunction with the cutbacks, IMC-Agrico is reducing DAP output at its Faustina, La., and New Wales, Fla., facilities. It is also suspending production at its Taft, La. DAP plant. The impact of these actions will be a 100,000-ton-per-month reduction in phosphate fertilizer output.

The previously announced suspension of phosphoric acid production at the joint venture's Nichols, Fla., plant will occur, as scheduled, later this week. The net effect of suspending phosphoric acid production at Nichols will be an additional 25,000-ton-per-month reduction in DAP output.

"The reduced production is in response to an industry-wide slowdown in international demand and from IMC-Agrico having comfortably positioned product for anticipated near-term North American demand," said Richard H. Block, president of IMC-Agrico. "The company continues to believe that there will be strong demand during the approaching spring season in North America. We also are confident that international demand will return to stronger levels in the coming months."

IMC-Agrico is a joint venture partnership between IMC Global Inc. and Phosphate Resource Partners Limited. IMC Global is one of the world's leading producers and marketers of agricultural products and services. Phosphate Resource Partners is engaged in the exploration, development and production of oil and gas reserves, as well as the activities of IMC-Agrico.