Yara sets up strategic partnership in China

In September 2006, Yara and China BlueChemical established a strategic partnership to pursue growth opportunities in China.

Yara was the sole strategic investor in China BlueChemical's IPO, purchasing a minority, 3.2 % ownership stake when it listed on the Hong Kong Stock Exchange in October 2006. The investment totalled 309 million Hong Kong dollars. (216 million Norwegian crowns).

China BlueChemical, a subsidiary of the China National Offshore Oil Corporation (CNOOC), adds value to the energy assets of its parent company by producing ammonia, urea and methanol.

Thorleif Enger, President and CEO of Yara, said at the time that the partnership would create new opportunities by harnessing each company's experience and capabilities in nitrogen applications. It aimed to give Yara a unique position from which to pursue growth in the world's largest nitrogen fertilizer and chemicals market. 

The partnership enabled joint investments in nitrate and/or NPK plants and established a platform for new projects in industrial applications. Consequently, the partners could expand the production, marketing and distribution of mineral fertilizers in China’s fast growing, high-margin domestic cash crop segment.
 
China BlueChemical is one of the largest and most efficient producers of nitrogen fertilizers in China, with manufacturing plants conveniently placed for domestic and export markets. They also benefit from close proximity to energy sources and from secure and stable feedstock supplies. 
 
The Company's Hainan Fudao plants incorporate Yara granulation technology. The plants were built between 1996 and 2003 and have annual urea production capacity of 1.8 million tonnes.