Oslo (2011-12-13): Yara International ASA and OCP S.A. have agreed key terms for
the establishment of a 50/50 joint venture in Brazil and the entry into
corresponding phosphate rock supply and other commercial arrangements.
The proposed joint venture will as a first step involve OCP gaining a 50%
interest in Yara's existing terminal and production plant in Rio Grande. Through
the joint venture, OCP and Yara will have access to the existing port, terminal
and storage facilities, which they plan to develop through investments in the
short to medium term.
The arrangements will include the new joint venture importing phosphate rock
supplied by OCP and producing Single Super Phosphate (SSP) for blending by Yara
into fertilizers and other phosphate products. In parallel, the two companies
will enter into a long-term sourcing agreement for phosphate rock to Yara's
European NPK plants.
"We are delighted to announce this cooperation with OCP, a leading company
within the phosphate industry. Brazil is a fast-growing agricultural market
where we, together with OCP, are creating a strong platform for further growth.
Furthermore, we are securing long-term raw material supply for our European NPK
plants. Both of these initiatives strengthen our competitive advantage within
the production and marketing of value-added fertilizer", said Jørgen Ole
Haslestad, President and CEO of Yara International ASA.
Yara's Rio Grande SSP plant has an annual capacity of approximately 650
kilotons, consuming approximately 350 kilotons of phosphate rock. OCP and Yara
expect that completion of the investment and the agreements will take place in
first quarter 2012, subject to regulatory approval.
Contact
Thor Giæver, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 48 07 53 56
E-mailthor.giaver@yara.com
Esben Tuman, Media Relations
Cellular (+47) 90 50 84 00
E-mailesben.tuman@yara.com
Yara International ASA is the world's leading chemical company that converts
energy, natural minerals and nitrogen from the air into essential products for
farmers and industrial customers. As the number one global supplier of mineral
fertilizers, we help provide food for a growing world population. Our industrial
product portfolio includes environmental protection agents that prevent air
pollution. Yara's global workforce of 7,300 employees represents the great
diversity and knowledge that enables Yara to remain a leading performer in the
industry.
www.yara.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Yara International ASA via Thomson Reuters ONE
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