02 October 2012 13:35 [Source: ICIS news]
DUBLIN (ICIS)--India’s Tata Chemicals does not expect the first stream of a 2.6m tonne/year ammonia-urea fertilizer production complex in Gabon, West Africa, to commence operation until at least 2015, a company source said on Tuesday.
Speaking on the sidelines of the IFA Production and International Trade Conference in Dublin, Ireland, a person familiar with the project said major delays in the construction of key support infrastructure means the plant will not be commissioned in 2014 as planned.
In April 2011, Tata Chemicals invested $290m (€225m) in a 25.1% stake in stream one of the complex, which will be built on a greenfield site near the country’s main sea port. Other shareholders included Singapore-based Olam International (62.9%) and the Gabonese government (12%).
Two streams, each of 1.3m tonnes/year of urea, with matching ammonia capacity, will be created.
However, as a result of the delay, Tata’s decision over the size of its stake in the second stream has also been pushed back a couple of years, the executive said.
He added that 25% of the output will still be reserved for India, but no decision has yet been taken over where the remaining 75% will be shipped.
($1 = €0.78)
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