IMC SALT ANNOUNCES REORGANIZATION OF EVAPORATED SALT OPERATIONS IN MIDWEST
In Kansas, salt production capacity will be increased at the Lyons facility to 420,000-plus short tons annually. The operation also will be upgraded with new technology that will improve its overall efficiency.
The expansion and modernization of Lyons, scheduled to begin in the spring of 1999, will coincide with the discontinuation of operations at the Hutchinson plant. The operation is scheduled to cease production in the fall of 1999 when the Lyons' expansion is completed. Hutchinson has approximately 120 employees.
IMC Salt's Hersey plant, which is the nation's newest and lowest cost salt producer, will continue to increase its output from the current 200,000 short tons annually to 300,000-plus short tons by late 1999. With its additional capacity, Hersey will expand its market territory in the nation's Great Lakes region. Customers in much of this geographic area are currently served by IMC Salt's Kansas operations at higher costs, primarily due to distribution logistics.
The New Johnsonville salt operation, a joint venture with DuPont that began production in mid-1997, will continue increasing its output to an annual capacity of 180,000 short tons. As salt production rises at New Johnsonville, it will begin supplying customers in the Southeast who were previously served by operations in Kansas.
"This reorganization will enable us to better serve customers, improve our competitiveness and expand our presence in the domestic market," said Robert F. Clark, president of IMC Salt. "By capitalizing on the strong synergies created by IMC Global's acquisition of Harris Chemical Group, Inc. in April 1998, IMC Salt will realize substantial efficiencies as well as increased market penetration. The decision to streamline our operations will further drive down costs and make IMC Salt more competitive."
IMC Salt is the world's third-largest producer and marketer of salt with operations in North America and the United Kingdom. Its parent company, IMC Global Inc., is one of the world's leading producers and suppliers of agricultural products and salt. With 1998 revenues and EBITDA of $2.7 billion and $825.6 million, respectively, the Company is among the world's largest producers and marketers of phosphate and potash crop nutrients, salt and animal feed ingredients.
This news release contains forward-looking statements that involve
risks and uncertainties. These statements are based on current
expectations; actual results may differ materially. Among the factors
that could cause actual results to differ materially are general
business and economic conditions in localities where the Company
operates; the impact of competitive products; pressure on prices
realized by the Company for its products; constraints on supplies of
raw materials used in manufacturing certain of the Company's products;
capacity constraints limiting the production of certain products;
difficulties or delays in the development, production, testing, and
marketing of products; difficulties or delays in receiving required
governmental or regulatory approvals; market acceptance issues,
including the failure of products to generate anticipated sales levels;
difficulties in rationalizing acquired businesses and in realizing
related cost savings and other benefits; foreign exchange rates and
fluctuations in those rates; the costs and effects of legal, including
environmental, and administrative proceedings involving the Company;
and the other risk factors reported from time to time in the Company's
SEC reports.
SOURCE IMC Global Inc.
02/01/99 /NOTE TO EDITORS: IMC Global news releases are available on the Company's Web site: http://www.imcglobal.com. They also can be obtained in the U.S. at no charge via fax by calling Company News on Call at 1-800-758-5804, ext. 433650/ /CONTACT: Investors, David A. Prichard, 847-205-4843, or News Media, Thomas C. Pasztor, 847-205-4801, both of IMC Global/
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CO: IMC Salt; IMC Global Inc. ST: Michigan, Kansas IN: CHM SU: