- Current report filing (8-K)
September 08 2011 - 3:31PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): September 8, 2011
RENTECH, INC.
(Exact name of registrant as specified in its charter)
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Colorado
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1-15795
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84-0957421
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(State or other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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10877 Wilshire Boulevard,
Suite 600
Los Angeles, California
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90024
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant’s telephone number,
including area code:
(310) 571-9800
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(Former name or former address if changed since last report.)
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Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 8.01 Other Events.
Rentech, Inc. is
filing this Current Report on Form 8-K to provide an update with respect to the
following expansion projects we are evaluating. References to “we,”
“us” and “our” in this report refer to Rentech, Inc.
and its consolidated subsidiaries, including Rentech Energy Midwest Corporation.
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Urea Expansion and Diesel Exhaust Fluid
Build-Out
. We are evaluating a project to increase the urea production
capacity at our nitrogen fertilizer facility in East Dubuque, Illinois by
approximately 13%, or 50 tons per day. The additional urea could be marketed as
liquid urea or upgraded into urea ammonium nitrate solution both of which sell
at a premium to ammonia per nutrient ton. In conjunction with evaluating our
urea expansion project, we are evaluating the installation of mixing, storage
and load-out equipment that would enable us to produce and sell diesel exhaust
fluid (“DEF”) from the urea produced at the facility. DEF is a
urea-based chemical reactant that is intended to reduce nitrogen oxide
emissions in the exhaust systems of certain diesel engines of trucks and
off-road farm and construction equipment. As an industrial product, DEF would
diversify our product mix and our potential customer base. We believe that
there is an expanding market for DEF, with the potential for long-term off-take
contracts on favorable terms. If we begin to produce DEF, we intend to arrange
for a third party to sell and distribute our DEF products to customers.
Although a budget for the urea expansion project and related DEF build-out has
not been finalized, we expect the projects would collectively cost
approximately $6.0 million. We would require additional funding to complete the
projects. We believe the expansion projects could be completed by the end of
2012, subject to obtaining the necessary funding, which we would seek to obtain
through debt or equity financing.
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Ammonia Capacity Expansion.
We have
commenced construction of a project at the facility that is designed to
increase ammonia production at the facility by approximately 70,000 tons
annually, for sale or upgrade to additional products. We have completed a
feasibility study, contracted with an engineering firm to perform Front End
Engineering and Design (“FEED”), obtained the construction permit
and commenced construction of certain long lead-time items in order to put the
project on a schedule that fits with planned downtime for our 2011 and 2013
turnarounds. We expect FEED to be completed by early 2012, and it will result
in more precise cost estimates, based on equipment purchase quotes, than those
from the initial feasibility study. Based on the engineering work completed to
date, our preliminary estimate is that this project could be completed in 24 to
30 months without adding significant downtime to that already planned for
the 2011 and 2013 turnarounds, and we expect that this project could cost
approximately $100 million to complete. As we complete engineering and
more detailed cost estimates, which could vary substantially from current cost
estimates, we will continue to evaluate the ammonia market to determine whether
the expected returns on this project remain favorable. We will require
additional debt and/or equity financing to complete this project.
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SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
RENTECH,
INC.
Date: September 8, 2011
By:
/s/ Colin M. Morris
Colin M. Morris
Vice President and General Counsel
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