Feb 09, 2009
"We are delighted with reaching this milestone. With our commitment to the growth and expansion of Lifeco, the acquisition will be of great benefit to Yara, LIA and NOC. Lifeco complements Yara's global commercial activities and provides new investment in Libya as part of Yara's core business," says Jørgen Ole Haslestad, President and CEO of Yara International ASA.
NOC transfers to Lifeco the existing Marsa El Brega fertilizer assets, valued at USD 225 million, while Yara contributes to Lifeco the corresponding value in cash. NOC will supply natural gas to Lifeco under a long-term agreement with a gas price linked to fertiliser product prices. Yara will handle all urea and ammonia exports from Lifeco. The existing operations produce approximately 900,000 tonnes of urea and 150,000 tonnes of merchant ammonia per year.
Lifeco is jointly set up by NOC, LIA and Yara to own and operate the fertilizer facilities located at Marsa El Brega at the Mediterranean coast, some 700 km east of the Libyan capital Tripoli, with approximately 1,200 employees. Key utilities and services will be supplied by Sirte Oil Company, a NOC subsidiary and the owner and operator of the rest of the chemical complex at Marsa El Brega. Lifeco will embark on a programme to optimize and upgrade its operations. A second phase will aim to invest in new world scale production facilities as and when new natural gas resources are made available, subject to economic evaluations.
The company will be headquartered in Marsa El Brega under the leadership of its new CEO, Gianni Paci from Yara, supported by a joint core management team of experienced NOC and Yara executives.
According to Dr. Ghanem, Chairman of NOC, "Yara's participation in the joint venture will add strength to pursue our current modernisation and expansion plans for our fertilizer industry. Because Lifeco's business constitutes Yara's core business, in which it is a global leader, we have found the ideal partner in Yara. I am confident that this is a win-win situation for all Lifeco stakeholders."
Torgeir Kvidal, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 91 339 832
Bente Slaatten, Media Relations
Cellular (+47) 91 60 62 15
Yara International ASA is a leading chemical company that converts energy, natural minerals and nitrogen from the air into essential products for farmers and industrial customers. As the number one global supplier of mineral fertilizers and agronomic solutions, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that safeguard air and water purity and preserve food quality. Yara's global workforce of more than 8,000 employees represents great diversity and talent enabling Yara to remain a leading performer in its industry.