Oslo, 13 February 2018: Yara and Arab Potash Company have entered into a Memorandum of Understanding to explore collaboration on potassium nitrate.
Yara and Arab Potash Company, the Jordan-based potash producer have recently signed an MoU for mutual cooperation in the field of potassium nitrate production and sales. The parties will explore and evaluate the possibility of doubling the production capacity of KEMAPCO, the potassium nitrate producing subsidiary of APC, and accordingly Yara is targeting a minority position (30%) in Kemapco with a 100 % distribution and marketing agreement for Yara. Potassium nitrate is a key product in solutions for fertigation, a fast growing segment that Yara and Kemapco aim to develop further through this collaboration.
"With this MoU we are pleased to establish a collaboration of strategic value. Our farmer centric approach means that we offer a full range of nutrients and solutions to meet farmers needs in all climates and for all soils. Fertigation is the combined application of water and nutrients to a crop, a mix of fertilizer and irrigation in the same application. The collaboration with Kemapco will facilitate exchange of technology and know-how, and secure access to potassium nitrate that will strengthen our fertigation offering," said Terje Knutsen, EVP Crop Nutrition, Yara.
Kemapco is a subsidiary of the Arab Potash Company, and operates a single potassium nitrate plant in Aqaba, Jordan. Production in 2017 amounted to 130 kt potassium nitrate, with sales amounting to about USD 105 million.
"The signing represents an important step in the plan to grow our business, we believe that our high quality product will be a great fit for the growing potassium nitrate demand. We are pleased to have the opportunity to grow our business with Yara's extensive sales network." said Jamal Al-Sarayrah, Chairman of the Board of Directors, Arab Potash Company.
Note: any final transaction will be conditional on the customary regulatory and corporate approvals.
For further information, please contact:
Thor Giæver, SVP Investor Relations, Yara
Office: (+47) 24 15 72 95
Mobile: (+47) 48 07 53 56
E-mail: thor.giaver@yara.com (mailto:thor.giaver@yara.com)
Esben Tuman, Vice President Corporate Communications
Mobile: (+47) 90 50 84 00
E-mail: esben.tuman@yara.com (mailto:esben.tuman@yara.com)
About Yara
In collaboration with customers and partners, Yara grows knowledge to responsibly feed the world and protect the planet, to fulfill its vision of a collaborative society, a world without hunger and a planet respected.
Our crop nutrition solutions and precision farming offerings allow farmers to increase yields and improve product quality while reducing environmental impact. Our environmental and industrial solutions improve air quality and reduce emissions, and are key ingredients in the production of a wide range of products. We foster an open culture of diversity and inclusion that promotes the safety and integrity of our employees, contractors, business partners, and society at large.
Founded in 1905 to solve emerging famine in Europe, Yara has a worldwide presence with more than 16,000 employees and operations in over 60 countries. In 2017, Yara reported revenues of USD 11.4 billion.
www.yara.com (http://www.yara.com/)
About Arab Potash Company
The Arab Potash Company "APC" is the world's eighth largest producer of potash and serves markets in Asia, Middle East, Europe, and Africa.
APC has a 100 year concession to the minerals rights of the Dead Sea which began in 1958. The Company also has downstream investments in potassium nitrate, bromine and other Dead Sea products. APC, your partner in food security.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Yara International ASA via Globenewswire
