Cronus Fertilizers Expands Partnership and Extends EPC Contract with thyssenkrupp Industrial Solutions for Tuscola, Illinois, Ammonia Project
Cronus Fertilizers announced important changes to its partnership with thyssenkrupp Industrial Solutions (tkIS) that will enhance the success of Cronus' proposed Tuscola, Illinois, fertilizer plant. Cronus has extended its fixed price, lump-sum turnkey engineering, procurement and construction (EPC) contract with thyssenkrupp Industrial Solutions (tkIS) through June 30, 2021, and is finalizing an additional operations and maintenance (O&M) agreement with tkIS. Under the terms of the O&M agreement, tkIS will be involved in operating and maintaining the plant once it begins production. Furthermore, tkIS will become a minority shareholder in Cronus Fertilizers LLC.
These agreements strengthen the partnership between Cronus Fertilizers and tkIS. The Cronus Fertilizers facility will be one of the largest of its kind in the United States.
"thyssenkrupp Industrial Solutions is looking forward to working in partnership with the Cronus team to realize this world-scale ammonia plant," said Dr. Sami Pelkonen, CEO of tkIS' Business Unit Chemical & Process Technologies. "Our investment in Cronus Fertilizers demonstrates our commitment to this project and to Cronus' success in particular."
In January 2020, Cronus announced new investment from Keyman-Avunduk Investment Company AG (KAIC), which made KAIC the majority shareholder in Cronus Fertilizers. KAIC has provided financial backing and industry expertise that have helped to advance the project. "We are developing one of the largest fertilizer facilities in the U.S. and bringing together global experts to ensure the highest quality in both the construction and operations of the Cronus plant," said Melih Keyman, Chairman of Cronus Fertilizers. "We are proud to expand our partnership with tkIS on this important project."
The Cronus Fertilizers facility in Tuscola will produce up to 2,300 metric tons of ammonia per day, giving regional farmers access to locally produced ammonia and largely eliminating the need for imported products. The facility will be a major new source of ammonia for the agricultural industries of the Midwest Corn Belt. "The Cronus project is another milestone for our continuing success story in the fertilizer business in North America," stated Ralf Richmann, long-term head of the Operating Unit Fertilizers at tkIS. Cronus previously announced an updated plant design that focuses on ammonia and on-site delivery.
"The expansion of our partnership with tkIS is a new vote of confidence in Cronus Fertilizers from the world's leading fertilizer technology company," said Erzin Atac, CEO of Cronus Chemicals. "We look forward to working with our local and global partners on the continued progress of this project."
"Since we began our cooperation with Cronus during my time as president of tkIS (USA), I have been particularly impressed by the strong local and regional support," stated Karsten Radtke, now heading tkIS' global business development. "With the commitment and the strength of the Cronus team, we are confident that the Cronus Plant will create major benefits for Midwestern agriculture and the local economy in Tuscola and surrounding areas."
The plant is expected to provide a significant boost to the economy in the form of construction jobs, long-term positions and spending activity. Cronus will announce updates to the project timeline as the development process advances.
About Cronus Fertilizers
Cronus Fertilizers is a project of Cronus Chemicals, LLC. Cronus Fertilizers works to provide high-quality, locally produced fertilizers for Midwestern farmers, while reducing reliance on imported nitrogen products. Cronus Chemicals, LLC was formed by a highly accomplished team of executives with decades of experience in the development, manufacturing and marketing of fertilizer products. www.cronuschem.com.
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