Yara, OCP agree phosphate rock joint venture in Brazil

13 December 2011 18:02  [Source: ICIS news]

LONDON (ICIS)--Yara International has agreed terms for a 50:50 joint venture with Office Cherifien des Phosphates (OCP) in Brazil, the Norway-based fertilizer major said on Tuesday.

The joint venture will involve Moroccan-based phosphoric supplier OCP gaining a 50% interest in Yara’s existing terminal and production plant in Rio Grande, said Yara.

It added that its Rio Grande plant has an annual capacity of approximately 650,000 tonnes, consuming approximately 350,000 tonnes/year of phosphate rock.

Yara and OCP will have access to the existing port, terminal and storage facilities, which the two companies will develop through investments in the short-to-medium term, it said.

The company added that the joint venture will also involve OCP importing phosphate rock and producing single super phosphate (SSP), which Yara will blend into fertilizers and other phosphate products.

"We are delighted to announce this cooperation with OCP, a leading company within the phosphate industry. Brazil is a fast-growing agricultural market where we, together with OCP, are creating a strong platform for further growth,” said Jorgen Ole Haslestad, CEO of Yara International.

“Furthermore, we are securing long-term raw material supply for our European NPK (nitrogen, phosphorous, potassium) plants. Both of these initiatives strengthen our competitive advantage within the production and marketing of value-added fertilizer,” he added.

Yara expects the completion of the investment and the agreements to take place in first quarter of 2012, subject to regulatory approval. The company did not comment on financial details of the joint venture.

By: Leigh Stringer
+44 208 652 3214

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