Oslo, 11 April 2016: Yara will invest approximately BRL 1 billion (USD 275 million) in expanding and modernizing its Rio Grande plant, which is strategically located in southern Brazil, a key region in the country's growing agricultural industry. Set for completion in 2020, the investment will create one of the biggest and most modern fertilizer sites in the Americas.
"This expansion represents another step in our Brazil growth strategy, further establishing our position in Brazil as a long-term industry player, committed to developing and investing in Brazilian agribusiness," said Svein Tore Holsether, President and Chief Executive Officer of Yara.
"The project is possible thanks to the acquisition of Bunge Fertilizantes in 2013, creating further consolidation synergies through optimization, automation and de-bottlenecking of the combined assets," said Svein Tore Holsether.
The expansion project will double the site's current 800,000 tonne annual fertilizer production and blending capacity, and provide customers with increased access to Yara's premium products, thereby reducing reliance on finished fertilizer imports. It will also improve health, environment, safety and quality performance, including substantially lower emissions than required by legislation.
The scope includes new warehouses, new acidulation and granulation lines, fully automated blending and bagging equipment for small (50 kg) and big (1 tonne) bags, a boiler for steam production, a wastewater treatment plant and rest areas for truck drivers. The plant already operates its own recently modernized and expanded pier, which is connected to the railway network and the industrial complex.
The facility is expected to create over a thousand direct and a further three to four thousand indirect employment opportunities, boosting the region's economy.
The investment follows approximately USD 1.5 billion of expansions and acquisitions carried out by Yara in Brazil in recent years, including the Bunge (2013) and Galvani (2014) acquisitions and the recent construction of the country's most modern blending and bagging terminals in Sumaré and Porto Alegre.
Thor Giæver, Investor Relations
Telephone: (+47) 24 15 72 95
Mobile: (+47) 48 07 53 56
Esben Tuman, Media Relations
Mobile: (+47) 90 50 84 00
Yara's knowledge, products and solutions grow farmers', distributors' and industrial customers' businesses profitably and responsibly, while nurturing and protecting the earth's resources, food and environment.
Our fertilizers, crop nutrition programs and technologies increase yields, improve product quality and reduce the environmental impact of agricultural practices. Our industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods. We foster a culture that promotes the safety of our employees, contractors and societies.
Founded in 1905 to solve emerging famine in Europe, today, Yara has a worldwide presence, with close to 13,000 employees and sales to more than 150 countries.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)