Yara International ASA today announced it will acquire the flue gas cleaning division of STRABAG SE, in a move that consolidates Yara’s position as a leading global, full-service emissions-to-air control company.
Increasingly stringent air quality standards are driving companies to invest in emission control technologies. With flue gas cleaning, Yara can provide an end-to-end service that includes the production of Selective Catalytic Reduction (SCR) and Selective Non-Catalytic Reduction (SNCR) systems to reduce Nitrogen Oxide (NOx) emissions, along with the reagents needed to operate them. The smog NOx creates exacerbates respiratory illness and other conditions and is blamed for tens of thousands of deaths in the world every year.
“Our acquisition of STRABAG’s flue gas cleaning division will increase our capacities in, and beyond, NOx control systems. It will also give us access to great teams in key growth markets like Asia and Eastern Europe, where we can help customers meet increasingly stringent environmental regulations,” said Yves Bonte, Senior Vice-President and head of Yara’s Industrial Segment. “We continue on our path towards being a global leader in environmental solutions.”
The STRABAG acquisition is part of Yara’s broader strategic direction to invest in products and services that address the related issues of environment, resources and food security. It follows Yara’s January, 2014, acquisition of H+H Umwelt-und-Industrietechnik GmbH, which primarily produces SCR systems to reduce Nitrogen Oxide (NOx) emissions on ships. In April this year, Yara also took a majority stake in Green Tech Marine, a leading Sulphur Oxide (SOx) scrubber supplier to the marine industry.
STRABAG, a leading company in the construction services industry, is selling its flue gas cleaning division in order to focus on its core construction services offerings while making sure that clients within the flue gas cleaning division are in the professional hands of experts in environmental solutions.
"The sale of our Flue Gas Treatment activities to Yara confirms our way to concentrate on the core business of construction and to expand our activities to other regions," said Thomas Birtel, CEO of STRABAG SE. "We expect this deal will lead to a closer cooperation with Yara in the field of industrial construction, where we will join our forces. Thus enables us to offer the best combination of technical expertise and local competence to our clients."
The transaction is subject to approval by the Austrian competition authority and other regulatory approvals. It is expected to be completed by the end of August 2014.