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Yara: New agreement paves way for Qafco-5

Feb 02, 2005
"We are preparing a Qafco-5 project which is supported by this new 25 year long gas contract. Qafco exemplifies a relationship that matured from a partnership of pioneers to a close-knit cooperation running the largest urea plant in the world," says Chairman of Qafco, Abdullah Hussain Salatt.
"We see a very good future for Qafco. World demand for nitrogen fertilizers is expected to continue to grow. With the new gas agreement with Qatar Petroleum we have secured a competitive energy platform for a further expansion of this successful partnership," says President and CEO of Yara International, Thorleif Enger.
Qafco has progressively developed production capacities and product quality, regularly modifying and modernising to be compatible with the latest technology in order to ensure a continuous supply of high-quality products. Qafco-4 - a 470 million dollar project - went onstream in 2004 and made Qafco the world's largest producer of urea.
The Qafco 4 production train provided an additional 0.7 million tonnes per year of ammonia and 1.1 million tonnes per year of urea, the world's largest granulation unit, based on Yara technology, and the world's largest bulk store for urea. Qafco-4 has boosted Qafco's ammonia production by 50% and urea production by 65% bringing Qafco's annual production capacity to 2 million tonnes of ammonia and 2.8 million tonnes of urea.
Qafco has been instrumental to the industrial diversification program of the Qatari Government through the optimal utilization of natural resources. Qafco's establishment formed the basis of the Mesaieed Industrial area. Qafco inaugurated its first plant in 1973. Yara (formerly Hydro Agri) has supported each of the four expansions, providing both technology and personnel with experience in both construction and operations. Qafco is owned 75% by Industries of Qatar and 25% by Yara. Yara is marketing 50% of the urea produced by Qafco.
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.
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