Hydro begins Jordan fertiliser complex financing talks

17 July 2000 17:44  [Source: ICIS news]

LONDON (CNI)--Norwegian industrial group Norsk Hydro and Jordan Phosphate Mines Co (JPMC) are currently in discussions with banks concerning the financing of their proposed joint venture fertiliser complex in Jordan, CNI learned on Monday.

The project, which was announced in 1997, has been stalled because of difficult market conditions in the region. But a spokesman for Norsk Hydro said the project is now "back in the decision-making process".

Norsk Hydro and its partners are now investigating various financing packages before submitting the project to the board, he told CNI. A final decision is expected before the end of the year.

The Norwegian group currently holds a 60% stake in the project, but plans to reduce this to 40-50% by introducing additional partners. JPMC holds the remaining 40% and is expected to be partnered by Jordanian companies Arab Potash and the Social Security Corp.

If the project is approved, the joint venture company Hydro Agri Jordan will produce 440 000 tonne/year of phosphoric and sulphuric acid at Eshidiya. Some 240 000 tonne/year will be used as feedstock for fertiliser plants at Aqaba. In Aqaba the granulating plants will be able to produce 1.2m tonne/year of NPK (nitrogen-phosphorous-potassium) and phosphate fertilisers.

Norsk Hydro posted on Monday pre-tax profits of NKr12.31bn ($1.4bn/Euro1.5bn) compared with NKr3.77bn last time.

By: Anna Jagger
+1 713 525 2653

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