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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) JULY 1, 1996
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MELAMINE CHEMICALS, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-16032 64-0475913
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
HIGHWAY 18 WEST
DONALDSONVILLE, LOUISIANA 70346
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICER) (ZIP CODE)
Registrant's telephone number, including area code (504) 473-3121
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Page 1 of 4 Pages
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ITEM 5. OTHER EVENTS
On July 1, 1996, Melamine Chemicals, Inc. issued the attached press
release.
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For: MELAMINE CHEMICALS, INC. Contact: RON COMO & ASSOCIATES, INC.
P.O. Box 748 74 Trinity Place
Donaldsonville, LA 70346 New York, NY 10006
Fred Huber, President & CEO Telephone: (212) 227-3010
Wayne D. DeLeo, Vice President & CFO
Telephone: (504) 473-3121 July 1, 1996
Immediate Release
MELAMINE CHEMICALS, INC. ENDS PLANS FOR EXPANSION IN
EUROPE AND TENNESSEE
DONALDSONVILLE, LOUISIANA, JULY 1ST--Melamine Chemicals, Inc. (NASDAQ-MTWO)
announced today the end of its consideration of expansion projects in Europe
and in Memphis, Tennessee.
The Company has been informed by Norsk Hydro ASA (Hydro) that Hydro has
decided not to move forward with the construction of a joint venture melamine
plant at one of Hydro's urea manufacturing sites in Europe because Hydro has
chosen to give priority to other development opportunities.
In an unrelated development, the Company and Arcadian Corp. have been
unable to agree on several substantive commercial terms related to MCI's
proposed construction of a melamine plant at Arcadian's Memphis, Tennessee site
and have agreed jointly to terminate their negotiations.
Fred Huber stated, "It is certainly disappointing to have invested so much
time, effort and money in these projects to no avail. Our faith in the
superiority of our M-II technology remains as strong as ever, and we will now
concentrate our efforts on the opportunity to debottleneck and expand our
plants at Donaldsonville which offers us an attractive alternative for
continuing our Company's growth."
The Company has spent approximately $1.9 million in connection with its
evaluation, engineering and design of these projects, and that cost will be
expensed in the fourth fiscal quarter of 1996.
The Company continues to negotiate with a major U.S. corporation seeking a
long-term supply of melamine crystal. It is now intended that this customer
will be supplied from the Company's facilities in Donaldsonville rather than
from a new plant in Memphis.
Melamine Chemicals, Inc. is engaged in the production and marketing of
melamine, a specialty chemical having numerous industrial and commercial
applications. The Company is also active in the development of new melamine
process and application technology. The Company is one of only two producers
of melamine in North America and one of the three largest producers worldwide.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MELAMINE CHEMICALS, INC.
Date: July 1, 1996 /s/ Wayne D. DeLeo
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Wayne D. DeLeo
Vice President & Chief Financial Officer