In 2014 Yara continued to grow both its sales and production capacity, through carry-over effects of the acquisition of Bunge’s fertilizer business in Brazil concluded in August 2013, the acquisition of OFD in Colombia, and the acquisition of a 60% stake in Galvani in Brazil. Several smaller acquisitions of technology companies were also conducted during 2014 to strengthen Yara Industrial’s Emissions to Air platform.
In October 2014 Yara completed the acquisition of OFD in Colombia, with 1.4 million tons of fertilizer deliveries and 0.4 million tons of compound NPK and nitrate fertilizer production. The acquisition provides increased value-added fertilizer production capacity, further improves Yara’s downstream footprint and scale in Latin America, and is targeted to deliver USD 20 million of annual synergies.
In December 2014, Yara completed the acquisition of a 60% stake in Galvani Indústria, Comércio e Serviços S/A, an independent privately held phosphate producer in Brazil. Galvani produces approximately 0.5 million tons of phosphate rock which is upgraded to approximately 1 million tons of Single Super Phosphate (SSP) and sold in the center and northeast of Brazil. Galvani also owns licenses for two greenfield phosphate mine projects in Brazil. With the acquisition, Yara secures phosphate fertilizer capacity in the center of Brazil. Furthermore, Galvani brings industry competence with cost-effective solutions for mining, production, blending and warehousing facilities.
During 2014, Yara also announced several brownfield expansion projects. In Porsgrunn, Glomfjord (Norway) and Uusikaupunki (Finland). Expansions will altogether add approximately 0.5 million tons of NPK per year and 0.2 million tons of calcium nitrate capacity by the end of 2017. Furthermore, Yara announced an expansion of 90 kilotons of the Köping TAN plant in Sweden. The additional capacity will primarily serve a growing local mining market.
Yara made good progress in 2014 on the partnership with BASF aiming to construct a world scale ammonia plant with a capacity of 750,000 metric tons in the US. The project was concluded on in February 2015 and will be finalized by the end of 2017. This project will further strengthen Yara’s strong position in the global ammonia market while increasing Yara’s exposure to the US gas market.
In September 2014, Yara entered into discussions with CF Industries regarding a potential merger of equals. It later became clear that the parties were not able to agree on terms that would be acceptable for all stakeholders, and in October 2014 Yara announced that the discussions had been terminated.