Air Products Plans to Close Ammonia and Methanol Production in Florida

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Air Products and Chemicals, Incorporated (NYSE: APD) (Allentown, Pennsylvania) (APCI) plans to cease production of both ammonia and methanol at its Pace, Florida plant site known as the Escambia Plant. APCI uses both ammonia and methanol in the production of methylamines that are produced at the Escambia Plant and plans to begin purchasing both products from the merchant market beginning in late 2003 when production in the two units is expected to end.

Foreign production of ammonia and methanol from such countries as Trinidad and others has increased substantially over the passed two years with expectations that production will only continue to increase making their imports more affordable than what APCI can produce locally. APCI's ammonia unit is based on 1950's design technology and produces approximately 300 tons per day and the methanol unit produces an estimated 170,000 gallons per day. Once these two units are brought offline in late 2003, APCI will evaluate their needs and potentially demolish the assets.

Planning and engineering is already underway to make modifications to the plant enabling it to receive merchant product and relocated it within the plant. This transition to a new feedstock source also has the potential of increasing the plant's capacity for amine production.