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TERRA INDUSTRIES COMPLETES ACQUISITION

 SIOUX CITY, Iowa, April 8 /PRNewswire/ -- Terra Industries Inc. (NYSE: TRA) today announced the completion of its acquisition of ICI Canada's nitrogen fertilizer manufacturing plant near Sarnia, Ontario and ICI's interest in 32 farm service centers, called Agromarts(TM), located in Ontario, New Brunswick and Nova Scotia. The acquisition price was $68 million (Canadian), of which $47 million (Canadian) was obtained by Terra through a lease arrangement. The remainder was funded by a working capital line of credit and cash. The acquisition is expected to add between $0.05 and $0.10 per share to Terra's 1993 earnings.
 The manufacturing plant posted 1992 sales of over $110 million (Canadian). The plant is considered by the industry to be one of the most efficient converters of natural gas to ammonia, the basic ingredient for nitrogen fertilizers, in North America. Its annual output of 450,000 tons increases Terra's total annual production capacity to 1.3 million tons. Approximately 40 percent of its ammonia production is upgraded into other nitrogen products. With this acquisition, Terra becomes the fifth largest ammonia producer and fourth largest nitrogen solutions manufacturer in North America. The plant will continue to supply ICI's agricultural and industrial customer base as well as Terra's customers in Michigan and Ohio.
 The 32 Agromarts recorded total 1992 sales of over $140 million (Canadian). Two of the Agromarts are wholly owned by Terra, and the remaining 30 are 50 percent owned by local management and investors.
 According to Burt Joyce, president and chief executive officer, "This acquisition is an excellent fit for Terra. We're pleased to welcome the Canadian employees and Agromart partners to the Terra team. We now have two of the five most efficient natural gas conversion plants for the manufacture of nitrogen fertilizers in North America. Additionally, the Agromart system expands our retail distribution network in the North American Corn Belt."
 Terra Industries Inc., with 1992 revenue over $1 billion, is a leading marketer and producer of fertilizer, crop protection products, seed and services for agriculture.
 -0- 4/8/93
 /CONTACT: Paula C. Norton of Terra Industries, 712-277-5438
 (TRA)


CO: Terra Industries Inc.; ICI Canada ST: Iowa IN: AGR SU: TNM

TS -- NY084 -- 4432 04/08/93 17:22 EDT
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Publication:PR Newswire
Date:Apr 8, 1993
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