About Yara

Sealing a new deal in South Africa

In 2000, Hydro and AECI, a local chemicals company, agreed to produce and sell fertilizer in South Africa on a joint venture basis.

The 50-50 joint venture incorporates operations from Kynoch Fertilizers, which holds a 40 percent share of South Africa's relatively large fertilizer market of two million metric tons.

Kynoch is a well-known name in South Africa. AECI is part of the huge mining and natural resources concern Anglo American Industrial Corp. Ltd.     

Until 2000, Hydro had been supplying raw materials to Kynoch and other South African producers. Of Kynoch's annual sales of one million tons, about 60 percent is produced at its own facilities. The company had 900 employees in 2000.

The acquisition was part of Hydro's strategy to utilize opportunities at the bottom of a cycle that lead to growth in emerging markets. It was also expressed as an ambition to contribute to the restructuring of the South African fertilizer industry through the closure of Kynoch's former nitrogen plants.     

Kynoch’s history started in the mid-19th century with ammunition manufacturing. Company founder George Kynoch arrived in South Africa from the UK in 1888 with an eye toward expansion, eventually earning the title, "Armourer to the South African Republic." The business moved into explosives, and later diversified into fertilizer production.

We use cookies on this website. If you continue to use the site without changing your settings, you agree that we may store and access these cookies on your device. To understand more about our use of cookies and to change cookie settings at any time please see
Cookie Preferences
I accept cookies