Rentech to close R&D facility

Rentech, Inc. announced plans to close its research and development (R&D) Product Demonstration Unit (PDU), in Commerce City, Colorado, and to eliminate all related R&D activities.
The company said its strategy will be to focus on more immediate growth opportunities within the energy industry that do not rely on new technologies.
“While our elimination of these positions is a difficult decision, today’s actions will further position Rentech to drive value for shareholders by cutting R&D spending and focusing on businesses that generate strong returns, with ready markets, and certainty of revenue,” said D. Hunt Ramsbottom, president and CEO, of Rentech.
The investments we are considering have either immediate or near-term profitability, and will meet our disciplined investment criteria. Our success in growing Rentech Nitrogen and generating attractive returns from that business is the best example to date of the disciplined investment approach that we will follow as we consider additional investments.”
As a result of these changes, Rentech will eliminate 65 employee and contractor positions in the company’s alternative energy segment during the first half of 2013.
In addition, Rentech will attempt to sell the PDU as well as approximately 450 acres of land in Natchez, Miss., it acquired for the development of an alternative energy facility.
Rentech expects to incur a one-time non-cash impairment charge to intangible assets related to its technology of approximately US$16 million, in its financial statements for the period ended December 31, 2012. (February 28, 2013)