Yaras business model and segments at a glance

The Upstream segment has a strong and efficient manufacturing base with high utilization rates and economies  of scale. This is achieved through a global no. 1 position in ammonia, nitrate and NPK fertilizer production, as  well as increased sourcing from low-cost natural gas regions and continuous focus on productivity improvements and simplification.

The Downstream and Industrial segments are margin businesses, which provide additional and stable margins and reduce cyclicality in earnings. A knowledge margin is achieved through partnerships with key specialty fertilizer players and industrial partners. This enables the Company to combine local knowledge and customer relations with a comprehensive and differentiated product offering.

Yara’s global presence optimizes product flows to prevailing market conditions via its comprehensive local, regional and global market intelligence, combined with a geographically balanced production, storage and distribution network.

The benefits of this business model have been key to Yara’s strong financial performance over the past years.

Downstream

• Global presence
• Local market knowledge
• Agronomic and application competence
• Differentiation and branding

Downstream offers differentiated products and services to many different market segments, covering both commodity and high-value crop segments. The product portfolio is well balanced with standard nitrogen products like urea and UAN and upgraded products like nitrates, NPK and other value-added fertilizer products.

Industrial

• Product innovation
• Local market knowledge
• Differentiation and branding
• Technical competence

The Industrial segment creates value by developing and selling chemical products and industrial gases to non-fertilizer market segments. Nitrogen chemicals include urea and ammonia supplied to European chemical majors, as well as industrial explosives.

The product portfolio also includes industrial gases and CO2 for the food and beverage industries. In addition, environmental applications are growing strongly, driven by new legislation in industrialized countries.

Upstream

• Economies of scale
• Low-cost gas
• Simplification and productivity improvements
• Strong product portfolio

The Upstream segment includes Yara’s large-scale ammonia and fertilizer plants, the backbone of Yara’s production system, as well as the global trade of ammonia. Ammonia is the basic building block for production of urea, nitrates and other nitrogen products that are sold through the Downstream and Industrial segments.