Agrium announces nitrogen fertilizer capacity expansion.

CALGARY, ALBERTA--(BUSINESS WIRE)--Sept. 20, 1995--Agrium Inc. announced today that its overall nitrogen fertilizer production capacity will increase by some 20 percent by the end of 1996 via low cost incremental capacity additions to current production facilities. Total incremental capital expenditures to achieve the capacity increases total approximately Cdn $60 million (U.S. $ 42 million) of which Cdn$ 18 million (U.S. $ 13 million) will be spent by December 31, 1995. The following is a summary of the expansion projects:

BORGER, TEXAS

Annual production capacity on 1 January 1995 was 365,000 tonnes (400,000 tons) of ammonia and 76,000 tonnes (84,000 tons) of urea. The first stage of a two-stage expansion increased ammonia capacity to 392,000 tonnes (430,000 tons) in February, 1995. The second stage, anticipated to begin in October, 1995, will further increase ammonia capacity to 440,000 tonnes (483,000 tons). A project to increase urea capacity is also expected to begin in October, 1995, bringing the urea capacity to 89,000 tonnes (98,000 tons). All projects are expected to be completed in the fourth quarter of 1996. CARSELAND, ALBERTA

An expansion commencing early in 1996 will increase annual production capacity to 548,000 tonnes (604,000 tons) of ammonia and 733,000 tonnes (808,000 tons) of urea by June, 1996. Current capacity is 450,000 tonnes (495,000 tons) of ammonia and 585,000 tonnes (645,000 tons) of urea.

HOMESTEAD, NEBRASKA

Expansion projects will increase the ammonium nitrate annual capacity to 186,000 tonnes (205,000 tons) of agricultural grade ammonium nitrate by October, 1995, and will further increase capacity to 190,000 tonnes (210,000 tons) by July, 1996, up from current annual production capacity of 180,000 tonnes (198,000 tons).

JOFFRE, ALBERTA

Annual production capacity has increased from 350,000 tonnes (385,000 tons) to 420,000 tonnes (460,000 tons) because of increased volumes of hydrogen from our supplier and upgrading of production equipment. The increase became effective in October, 1994.

Agrium Inc. is one of North American's largest integrated and diversified fertilizer companies. -0-

                      PLANT CAPACITY  INCREASED      EFFECTIVE
PLANT       PRODUCT   OCTOBER 1/94    PLANT CAPACITY  DATE

Borger,     Ammonia   365,000 tonnes  392,000 tonnes  February,
Texas       (Stage 1) 400,000 tons    430,000 tons    1995

            Ammonia        -          440,000 tonnes  December,
            (Stage 2)      -          483,000 tons    1996

Borger,     Urea       76,000 tonnes   89,000 tonnes  December,
Texas                  84,000 tons     98,000 tons    1996
---------------------------------------------------------------

Carseland,  Ammonia   450,000 tonnes  548,000 tonnes  June,
Alberta               495,000 tons    604,000 tons    1996

Carseland,  Urea      585,000 tonnes  733,000 tonnes  June,
Alberta               645,000 tons    808,000 tons    1996
---------------------------------------------------------------

Homestead,  Ammonium  180,000 tonnes  186,000 tonnes  October,
Nebraska    Nitrate   198,000 tons    205,000 tons    1995
            (Stage 1)

            Ammonium        -         190,000 tonnes  July,
            Nitrate         -         210,000 tons    1996
            (Stage 2)
---------------------------------------------------------------

Joffre,     Ammonia   350,000 tonnes  420,000 tonnes  October,
Alberta               385,000 tons    460,000 tons    1994
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CONTACT: Dick Nichols, [phone]