Phosphate Holdings, Inc. and its wholly owned subsidiary, Mississippi Phosphates Corporation, are engaged in the production and marketing of diammonium phosphate, or DAP, a phosphate fertilizer. The Company’s production facilities are located on a deep-water channel at Pascagoula, Mississippi with direct access to the Gulf of Mexico. Its manufacturing facilities consist of two sulfuric acid plants, a phosphoric acid plant and a DAP granulation plant. The DAP granulation plant has a maximum annual production capacity of approximately 850,000 tons. Its sulfuric acid plants produce sulfuric acid sufficient for annual DAP production of approximately 600,000 to 640,000 tons. Phosphate Holdings, Inc.’s product is diammonium phosphate fertilizer (DAP). Phosphate rock and sulfuric acid, which are manufactured at the plant, or purchased, are combined to form phosphoric acid, which is then mixed with ammonia to produce DAP, a dry granular product.
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