OCI N.V. (Euronext: OCI) today announced that it has signed a definitive agreement with Dakota Gasification Company (DGC) to sell nitrogen fertilizers, industrial ammonia and diesel exhaust fluid (DEF) in North America through a newly formed joint venture, N-7 LLC (N-7).
The joint venture will market and distribute more than 4.5 million metric tons of product from Iowa Fertilizer Company, OCI Partners in Texas and DGC’s Beulah facility in North Dakota. In addition, N-7 will market any imported product from OCI’s operations outside North America.
The venture is expected to bring a number of benefits to OCI, DGC and their customers, including enhanced utilization of truck and rail logistics infrastructure and improved security of supply to customers.
Paul Sukut, Chief Executive Officer of Dakota Gas, said: “We expect that this new partnership will provide many benefits for marketing the fertilizers produced at the Great Plains plant. Through N-7, we will be able to better serve the North Dakota market and the local agricultural economy, and it makes good business sense as well. We have a large customer base in the 250-mile radius around the Synfuels Plant, and achieving transportation and selling cost synergies through N-7 enables us to more efficiently serve the local farming community and be a dependable local source of fertilizer for area farmers.”
Nassef Sawiris, Chief Executive Officer of OCI N.V., said: “We are delighted to join forces with Dakota Gasification Company. The joint venture allows us to extend our reach throughout North America, expand our product offering and customer base, and better serve our existing customers.”
OCI N.V. was advised by Vinson & Elkins LLP and Dakota Gasification Company by Orrick, Herrington & Sutcliffe LLP.