Cominco American Inc., a wholly-owned subsidiary of Cominco Ltd. (TSE), and alenco Petrochemicals have formed a partnership which will allow Alenco to participate in Cominco American’s nitrogen-based fertilizer business. Alenco is a wholly-owned subsidiary of Alberta Energy.
Under the partnership agreement, CAI will contribute its nitrogen-based fertilizer business including a 375,000-ton-per-year ammonia and 85,000-ton urea facility at Borger, Tex., a 180,000-ton- per-year ammonium nitrate and solution facility at Beatrice, Neb., storage facilities at Early, Iowa, and Beatrice, and distribution facilities along the entire length of the Mapco ammonia pipeline.
Allenco will contribute cash to earn a 25% interest in the new partnership. CAI will retain a 75% interest plus management responsibility for the combined operations. CAI will also market the partnership’s products and will continue to purchase and sell nitrogen-based products from third parties.
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