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Terra to Resume Ammonia Production at Billingham and Yazoo City
Monday February 27, 7:00 am ET

SIOUX CITY, Iowa--(BUSINESS WIRE)--Feb. 27, 2006--Terra Industries Inc. announced today that it is in the process of restarting its ammonia production plants in Billingham, Teesside, UK and Yazoo City, Miss. Terra expects to resume ammonia production at these plants on March 1, 2006.

Terra announced on Nov. 7 and Dec. 27, 2005, that it had suspended ammonia production at the Billingham and Yazoo City facilities due to high natural gas costs and to complete an extended maintenance turnaround at the Yazoo City facility. During the outages, the company made sales from its own inventories and used purchased ammonia as a feedstock to produce and sell upgraded products. Recent decreases in natural gas costs make it more economical for Terra to produce, rather than continue to purchase, ammonia to meet Billingham and Yazoo City customer demands.

Terra also announced that beginning March 1, it is curtailing U.S. nitrogen solutions production to about 35 percent below capacity to direct more output to meet merchant ammonia sales requirements and ensure minimal inventories of both products at July 1, 2006.

About Terra

Terra Industries Inc., with 2005 revenues of $1.9 billion, is a leading international producer of nitrogen products.

Source: Terra Industries Inc.

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