Yara has entered a partnership with the Russian fertilizer producer OAO Minudobreniya ('Rossosh'). The
Yara has entered a partnership with the Russian fertilizer producer OAO Minudobreniya ("Rossosh"). The agreement includes a minority stock acquisition, technology transfer and the integration of Rossosh into Yara's planning and marketing operations. Yara will hold a 30 percent stake in the company.
The partnership agreement and acquisition of shares in Rossosh confirms Yara's position as the market leader in the fertilizer industry and represents an important step for Yara in further strengthening its global market position within balanced fertilization of all three nutrients (NPK). Rossosh will be especially important for the development of Yara's market position in key Asian markets such as China, Thailand and Indonesia.
"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," says President and CEO of Yara International, Thorleif Enger.
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. Yara will as part of the agreement secure technology transfer and upgrade the NPK plant to meet the high quality standards of other Yara plants. The agreement will give Yara access to competitively priced energy and other raw materials.
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. The transaction provides effective leverage for future growth: minority stock acquisition, technology transfer and exclusive marketing and distribution rights for fertilizer export.