LONDON (ICIS)--Chemicals major Borealis on Friday unveiled plans to divest its Biosuper business in France in a move that will free up storage space for its own fertilizer products at its warehouse in La Rochelle.
The Biosuper brand, a phosphate-based dryer used in animal stables, and the related production equipment will be transferred to the new owner, Eliard-SPCP, during the current quarter, Borealis said in a statement without disclosing financial details.
Borealis currently sells around 150,000 tonnes of fertilizers/year from La Rochelle, where around 40 people are employed. No job cuts will occur at the site as "all current warehouse employees will be needed to handle the additional fertilizer volumes,” said the company.
The largest producer of nitrogen fertilizers in France, Borealis employs approximately 940 people at three production sites in Grand-Quevilly, Grandpuits and Ottmarsheim, as well as a storage site at La Rochelle.
Eliard-SPCP, a manufacturer and trader of agricultural products, has been selling Biosuper products for years and the "intended synergies will enable product innovations and new logistics facilities", the statement added.
"The sale of the Biosuper business and equipment will enable a more efficient use of our assets at La Rochelle," stated Gerald Papst, Borealis’ vice president Business Unit Fertilizer.
"Being able to handle an additional 10,000 tonnes of fertilizer annually will help us to further grow our business in France and ensure excellent service to our customers," he added.
"The divestment of the Biosuper business is a strategic step we have taken to focus on our core fertilizer business in France," added Markku Korvenranta, executive vice president Base Chemicals.
"Our stated commitment is to grow in Europe. This goal requires a firm focus on increasing efficiency along with reliability and safety," he concluded.