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CF Industries Announces Capacity Expansions

CF Industries Holdings, Inc. (NYSE:CF) today announced that it will construct new ammonia and urea/UAN production units at its complex in Donaldsonville, Louisiana, and new ammonia and urea units at its complex in Port Neal, Iowa. CF Industries’ board of directors has authorized expenditure of $3.8 billion for the projects and the company has retained engineering and procurement services from ThyssenKrupp Uhde through their affiliate Uhde Corporation of America. In combination, these projects will be able to produce annually 2.1 million tons of gross ammonia and upgraded products ranging from 2.0 to 2.6 million tons of granular urea and up to 1.8 million tons of UAN solutions, depending on product mix.

“We are pleased to announce definitive, large-scale nitrogen capacity expansion plans at our North American operations focused on substantially increasing our ability to serve our customers,” said Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. “We believe that our projects will be among the first in North America to be in production. We already own suitable sites, have retained a world-class engineering partner and have completed the front end engineering and design study for key components of the projects.”

The capital cost estimate of $3.8 billion includes: engineering and design; equipment procurement; construction; associated infrastructure including natural gas connections, power supply, and product storage and handling systems; and related start-up expenses.

Expenditures for the projects have begun and will continue into 2016. The Donaldsonville project budget is $2.1 billion, with the new urea and UAN plants scheduled to come on stream in the second half of 2015 and the new ammonia plant in 2016. The Port Neal project budget is $1.7 billion with the new ammonia and urea plants scheduled to come on stream in 2016. The following table indicates the production capacity for each of the new plants and the anticipated typical product mix.
 

Annual Capacities and Typical Product Mix
         
Annual Capacity Typical Product Mix
Donaldsonville, LA Tons per Day (000 tons) (000 tons)
Ammonia (ThyssenKrupp Uhde) 3,640 1,274 184
Urea (Stamicarbon) 3,850 1,348 686
Nitric Acid (ThyssenKrupp Uhde) 1,675 586
UAN (ThyssenKrupp Uhde) 5,050 1,768 1,768
 
Port Neal, IA
Ammonia (ThyssenKrupp Uhde) 2,425 849 81
Urea (Stamicarbon) 3,850 1,348 1,348
 
Notes:
All production volume shown as short tons
Production volume based on 350 operating days per year
 

“Increasing both our ammonia and upgraded product capacities and our product mix flexibility at Donaldsonville takes advantage of a location that already has access to multiple modes of transportation. When the new units are complete, the Donaldsonville complex in total will be able to vary use of its urea streams to produce between 2.4 million and 3.3 million tons of granular urea and between 1.2 million and 4.2 million tons of UAN solution,” commented Wilson. “The Port Neal facility will allow us to serve upper-Midwest urea customers from a cost-advantaged location.”

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