15 November 2010 06:18 [Source: ICIS news]
SINGAPORE (ICIS)--Agricultural commodities trader Olam International said on Monday it is diversifying into fertilizer and palm plantation business in Africa through its joint venture with the ?xml:namespace>
In the briefing materials released by Olam on the Singapore Exchange on Monday, the company said that a $1.3bn (€949m) port-based fertilizer complex housing an ammonia plant with a 2,200 tonne/day capacity and another facility that has a 3,850 tonne/day urea capacity would be built in the western African country, under a 80:20 joint venture between Olam and the Gabon government.
Olam said this project would be among the lowest cost urea producers globally given a competitive advantage - access to low-cost feedstock. The company had signed a 25-year natural gas fixed price contract to ensure adequate supply of feedstock for the urea plant, it said.
Meanwhile, Olam said it would also develop palm plantations through a 70:30 partnership with the
Palm planting at the site would start in early 2012 and targeted to be completed by 2016, with the plantations expected to have a 26m-tonne yield per hectare, Olam said.
Olam is a Singapore-based integrated global supply chain manager and processor of agricultural products and food ingredients.
($1 = €0.73)
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