Russian fertiliser producer OAO Minudobreniya (“Rossosh”) will sell a 30% stake in their company to Yara.
The agreement includes a minority stock acquisition, technology transfer and the integration of Rossosh into Yara’s planning and marketing operations.
The alignment with Rossosh will strengthen their position in the fertiliser industry, representing a greater presence within the global market of all three nutrients (NPK). Rossosh will be especially important for Yara’s development in key Asian markets such as China, Thailand and Indonesia.
Commenting on the acquisition, Thorleif Enger, President and CEO of Yara said, “With Rossosh we have found a good partner with a production platform built on Yara technology. Combining Yara's global reach with Rossosh' strong operational platform creates a win-win partnership\\$quot;.
The Rossosh plant, which is based on nitrophosphate technology licensed from Yara in the early 1980s, has a total production of approximately 900,000 tonnes of NPK, 450,000 tonnes of ammonium nitrate (AN), and 800,000 tonnes of ammonia. Half of the ammonia is upgraded to NPK and AN.
The Rossosh plant will be fully integrated into the Yara product planning and fertilizer marketing system, and Yara will coordinate production schedules and logistics for export of NPKs from Yuzhny in the Black Sea. The existing management will continue to operate the plant and handle all domestic sales and logistics.