In a further step to expand its participation in the agricultural market in the Brazilian Midwest, Yara International ASA today announces the signing of an agreement for the acquisition of the fertilizers blending unit of Adubos Sudoeste in Catalão, in Goiás State.
The investment is aligned with the company’s strategy to track the development of the agriculture market in Goiás – which has outgrown the national average in recent years.
Although part of the production may be sold to Tocantins State farmers, the focus of this unit will be rural producers in Goiás State, particularly growers of soybean, corn, beans, tomatoes, potatoes, onions and garlic.
According to Lair Hanzen, Senior VP of Yara International and President of Yara Brazil, the agricultural market in Goiás State – which is responsible for a huge part of the main Brazilian export crops, such as soybean and corn – is essential to the company’s plans in the country.
“To invest in fertilizer distribution in Goiás is strategic for Yara and reinforces our commitment to provide the best solutions to Brazilian farmers. Besides that, we maintain the efforts to increase the fertilizer production in order to reduce the national dependence on imports of raw materials”, says Hanzen.
Currently, the unit has a total capacity of 300 thousand tonnes per year. The acquisition depends on the approval of the Administrative Council for Economic Defense (Cade). Assuming the Cade approves the deal, Yara will begin the process of adapting the unit to the company’s standards.
This investment highlights Yara’s commitment to Brazilian agriculture. In recent years, Yara has invested approximately USD 1.5 billion in the country, including the acquisition of Bunge Fertilizantes (2013), the joint venture with Galvani (2014), the construction and revitalization of the most moderns industrial blending units of Brazil, in Sumaré (SP) and Porto Alegre (RS), as well as the announcement of a substantial investment in its Rio Grande complex, made in the beginning of this year.
Source: Norway Today