8-K

 
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                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  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): February 27, 1997



                             TERRA INDUSTRIES INC.
            (Exact name of registrant as specified in its charter)



            MARYLAND                   1-8520                   52-1145429
(State or other jurisdiction of   (Commission File            (I.R.S. Employer
incorporation or organization)         Number)               Identification No.)


             TERRA CENTRE
           600 FOURTH STREET
            P.O. BOX 6000
           SIOUX CITY, IOWA                        51102-6000
(Address of principal executive offices)           (Zip Code)


      Registrant's telephone number, including area code:  (712) 277-1340


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ITEM 5.  OTHER EVENTS.
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     On February 27, 1997, Terra Industries Inc. issued the press release
contained in Exhibit 1 hereto, which is incorporated by reference herein.

                                   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.


                                           TERRA INDUSTRIES INC.



                                     By:  /S/ George H. Valentine
                                          --------------------------------------
                                          George H. Valentine
                                          Senior Vice President, General Counsel
                                            and Corporate Secretary

Date:  February 28, 1997

EX-1

 
                                                                       Exhibit 1

[Logo of Terra Industries]
                                                           Terra Industries Inc.
                                                               600 Fourth Street
                                                                   P.O. Box 6000
                                                       Sioux City, IA 51102-6000
                                                      Telephone:  (712) 277-1340
                                                        Telefax:  (712) 233-3648
                                                         www.terraindustries.com
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NEWS RELEASE
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For Immediate Release                                   Contact: Paula C. Norton
                                                                  (712) 277-5438


TERRA NAMES BENNETT EVP AND COO

Sioux City, Iowa (February 27, 1997)NTerra Industries Inc. (NYSE symbol: TRA)
today announced that Michael L. Bennett (43) has been promoted to the position
of Executive Vice President and Chief Operating Officer of the company. Bennett
had been Senior Vice President of Terra and President of its Distribution
Division. No successor has yet been named to the latter position.

Bennett joined Terra in 1973 at its Port Neal nitrogen fertilizer manufacturing
plant, near Sioux City. He has had extensive experience in fertilizer
manufacturing, supply, distribution and sales. In 1992 Bennett moved into the
Distribution Division as vice president of the northern division, responsible
for sales of all crop input products in the northern half of the country. He was
named Senior Vice President in October 1994 and President of Terra's entire
distribution business in November 1995.

Bennett is an active member in a number of trade organizations and currently
serves as a director of the Agricultural Retailers Association and Senior Vice
Chairman of the Agribusiness Association of Iowa.

Terra Industries Inc., with 1996 revenues of $2.3 billion, is a leading marketer
and producer of nitrogen fertilizer, crop protection products, seed and services
for agricultural, turf, ornamental and other growers. Terra also produces
nitrogen products and methanol for industrial customers.

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Note: Terra Industries' news releases are available at no charge through PR
Newswire's "Company News On-Call" fax service. To obtain a Terra news release,
call 800-758-5804, code 437906.