In 2012 Yara continued to add capacity, particularly through expansions at the Qafco operation in Qatar, an increased share in Yara Pilbara in Australia, the agreement to acquire Bunge’s fertilizer activity in Brazil, and the initiation of several brownfield expansion projects, among other growth initiatives.
Yara has a 25% ownership share in the Qafco JV and markets approximately 50% of the company’s urea production. The Qafco 5 and Qafco 6 expansions, which started in 2007 with the construction of two world-scale ammonia and urea plants, were completed at a total cost of USD 3.8 billion in 2012.
Yara increased its share in the Burrup ammonia plant in Western Australia from 35% to 51%, renaming it Yara Pilbara, and agreed with Orica and Apache Energy to construct a technical ammonium nitrate (TAN) facility with an annual capacity of 330,000 tons adjacent to the existing ammonia plant. Yara and Orica each have a 45% share, while Apache has a 10% stake, in the TAN facility which is scheduled for completion in 2015 at an estimated cost of USD 800 million.
Expansions in Qatar and investments in Yara Pilbara represent a further increase in Yara’s share of oil and gas consumption outside Europe, from 30% in 2007 to 45% in 2012.
In December 2012 Yara entered into an agreement to acquire Bunge’s fertilizer business in Brazil, which had 22 blending units and a delivery of 4.8 million tons of fertilizer products in 2011. With this agreement Yara adds to its unmatched global fertilizer trade network and reinforces its position as a significant fertilizer company in Brazil, with a well-anchored local commitment combined with global leadership in safe and reliable production. The transaction, valued at USD 750 million, is subject to the approval of Brazilian competition authorities (CADE).
During 2012 the Board of Directors approved further brownfield expansion projects within Yara’s existing asset base. In Belle Plaine, Canada, Yara considers a potential world-scale ammonia/urea expansion, while in Porsgrunn, Norway, a NOK 300 million investment and de-bottlenecking program will increase NPK capacity by approximately 300,000 tons by 2014.