Kemira Agro completes purchase of S African Kynoch Feeds

25 October 2002 11:28  [Source: ICIS news]

LONDON (CNI)--Kemira Agro's animal nutrition business said Friday it has completed the acquisition of South African animal feed manufacturer Kynoch Feeds.

The deal, announced last September, was agreed in principle on 31 March 2002 but contractual negotiations delayed completion until October, said Kemira Agro Animal Nutrition vice president Michael Christensson.

Financial details were not disclosed and Christensson declined to comment on assertions made last year by Kynoch Feeds parent company, South African chemicals group AECI, valuing the deal at Rand50m-100m ($4.8m-9.9m/Euro4.8m-9.9m).

Kynoch Feeds has net sales of $45m and employs 233 people.

Kemira Agro Animal Nutrition said the acquisition, along with the start up of its new plant in Jordan, would strengthen its position in the Middle East, South East Asia, Australia and South American markets.

Potassium nitrate and dicalcium phosphate production at Kemira’s new Jordan plant is currently in the test phase ready for start-up this quarter, according to Christensson.

Kemira Agro, which is part of the Finnish chemicals group Kemira, said output from its current operations, the new Jordan plant and the acquired Kynoch Feeds acquisition will total around 725 000 tonne/year, ranking it among the top four worldwide inorganic feed phosphate producers.

By: Joanna Kesteven
+44 208 652 3214

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