Yara bought Vale Cubatão Fertilizantes plant in Brazil for over NOK 2 billion, and became a major nitrogen fertiliser producer in the country.
‘The acquisition will establish Yara as a producer of nitrogen fertilisers in Brazil, strengthen the company’s production capacity, and complement Yara’s existing position within distribution,’ said a company press release.
Yara bought the plant from the Brazilian mining company, Vale S.A. The plant consists of nitrogen and phosphate producers, with an annual production capacity of approximately 200 kilograms of ammonia, 600 kilograms of nitrates, and 980 kilograms of phosphate fertilisers.
The plant employs approximately 970 permanent workers, and 930 contractors.
‘The acquisition is an important step in establishing a more complete position in Brazil, and strengthens our position as a long-term industrial player that develops and invests in Brazilian agriculture and industry,’ said Yara’s CEO, Svein Tore Holsether.
The agreement is conditional upon the Competition Authority approving the acquisition, and other regulatory approvals, and is expected to come into force during the second half of 2018.
© NTB Scanpix / Norway Today