Yara evaluates restructuring of South African business
Sep 21, 2005
Yara has a strong presence and commitment to South Africa. However, planted area in South Africa has in recent years been reduced, resulting in decreased demand for fertilizer, growing oversupply and unsatisfactory profitability. Due to the changed market situation, a new strategy is being considered. The strategy being evaluated will further strengthen Yara's position in the retail fertilizer market in South Africa.
The new strategy involves an improved logistics structure, an upgraded product portfolio with a larger proportion of nitrophosphate NPK, and a proposed closure of the chemical production in Potchefstroom. Yara has initiated discussions with employee representatives, and it is expected that the discussions could last up to six months before a final decision is made. Costs related to the potential restructuring are estimated to be less than NOK 100 million.
Egil Hogna, Investor Relations
Telephone (+47) 24 15 71 66
Cellular (+47) 90 187 865
Arne Cartridge, Media Relations
Telephone (+47) 24 15 73 01
Cellular (+47) 47 900 900
Yara International ASA is the world's leading supplier of mineral fertilizers with particular strength in nitrogen-based fertilizers. Yara has a local presence in 50 countries worldwide. Yara sells more than 20 million tonnes of mineral fertilizers in more than 120 countries. Yara offers fertilizers meeting the nutrient needs of local crops supported by agronomic advice to make farming more profitable and agriculture more sustainable. Yara has a strong position in industrial markets in Europe as a supplier of nitrogen-based chemicals and is the leading supplier of liquid CO2.www.yara.com