In 2013 Yara continued to grow both its sales and production capacity, through carry-over effects of 2012 expansions at the Qafco operation in Qatar, increased share in Yara Pilbara in Australia, the acquisition of Bunge’s fertilizer activity in Brazil, the agreement to acquire OFD Holding Inc. in Colombia, and continued progress on 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 mid-2012.
In Pilbara, Western Australia, Yara, together with Orica and Apache Energy, is constructing a technical ammonium nitrate (TAN) facility with an annual capacity of 330,000 tons adjacent to the existing Yara Pilbara 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 second half 2015 at a total cost of approximately USD 800 million.
In August 2013 Yara completed the acquisition of Bunge’s fertilizer business in Brazil, comprising 22 blending units and 4.6 million tons of fertilizer deliveries in 2012. The acquisition significantly improves Yara’s downstream footprint and platform for upstream growth in Brazil, and is targeted to deliver USD 50 million of annual synergies from 2014.
In December 2013 Yara announced an agreement to acquire OFD Holding Inc. in Colombia, with 1.1 million tons of fertilizer deliveries and 0.4 million tons of compound NPK and nitrate fertilizer production in 2012. The acquisition provides increased value-added fertilizer production capacity, further improves Yara’s downstream footprint in Latin America, and is targeted to deliver USD 20 million of annual synergies following expected completion in mid 2014.
During 2013 Yara made further progress on brownfield expansion projects within Yara’s existing asset base. In Porsgrunn, Norway, a NOK 300 million investment and de-bottlenecking program is in progress, to increase NPK capacity by approximately 300,000 tons by 2014. Further brownfield expansion projects targeting a 500,000 ton increase in Yara’s Norwegian and Finnish NPK and CN production capacity are expected to be approved during 2014.
In October 2013 Yara announced it is in discussions with BASF to jointly construct a world-scale ammonia plant on the US Gulf coast.