Yara evaluates restructuring of South African business

Yara evaluates a new strategy for its South African business, including optimizing the logistics system, product portfolio and restructuring the plant in Potchefstroom.

Yara evaluates a new strategy for its South African business, including optimizing the logistics system, product portfolio and restructuring the plant in Potchefstroom.

Yara has a strong presence and commitment to South Africa. However, planted area in South Africa has in recent years been reduced, resulting in decreased demand for fertilizer, growing oversupply and unsatisfactory profitability. Due to the changed market situation, a new strategy is being considered. The strategy being evaluated will further strengthen Yara's position in the retail fertilizer market in South Africa.
 
The new strategy involves an improved logistics structure, an upgraded product portfolio with a larger proportion of nitrophosphate NPK, and a proposed closure of the chemical production in Potchefstroom. Yara has initiated discussions with employee representatives, and it is expected that the discussions could last up to six months before a final decision is made. Costs related to the potential restructuring are estimated to be less than NOK 100 million.

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