January 26, 2015
Brazil is the fifth most populated country in the world with around 200 million people living mostly in the vicinity of the coast. Population growth and economic expansion has resulted in heavy road traffic and NOx emissions.
Across the entire state of São Paulo air pollution has been cited as responsible for the deaths of nearly 100,000 people from 2006 to 2011 from respiratory illnesses, according to a recent report cited by Impact Global Emission Solutions. Legislation has been put in place to address air pollution.
A landmark partnership between Yara Brazil and Lubraquim guarantees national production of NOx reduction reagent for Yara's Air1/NOxCare emission abatement solutions. The partnership will strengthen Yara’s presence in a growing market and will bring it closer to its customers.
Yara is the world’s largest producer of ARLA 32 (AdBlue/DEF), a high purity urea solution for NOx emission abatement in heavy duty and off-road vehicles. As part of the agreement with Lubraquim, the raw materials of the reagent will be imported from Yara’s European plants in Le Havre (FR) and Brunsbüttel (DE), backed up with some other European third parties supplies. They will then be dissolved at Lubraquim's unit in Ribeirão Pires (metropolitan region of São Paulo) using Yara standard production methods.
"We are excited to bring this operation to Brazil. As well as producing more than 50 percent of Yara's NOx reducing reagents marketed in the country, this unit will also bring us even closer to our customers," says Yara Brazil Industrial Business Director Gianni Canneti.
"In addition, the domestic market will have a supply option from a reliable and solid company," Canneti adds. "For Yara, the main gain is to strengthen the presence of its industrial solutions and differentiate between the major players in Brazil."
The Air1/NOxCare production in Ribeirão Pires will cover the markets of São Paulo, Minas Gerais, Goiás, Mato Grosso, Mato Grosso do Sul and Rio de Janeiro. The first two states alone now account for 30 percent of national consumption.
Lubraquim, a São Paulo manufacturer of automotive lubricants, provides a key logistical benefit, being located near the main Brazilian Air1 market. Major customers can collect their supply directly from the dissolving unit, easing their operations.
"In addition to the strategic location, the partnership adds another Yara supply source in Brazil and, in addition to the liquid bulk import implemented in Santos (port area in São Paulo state), will enable the company to consolidate as one of the few in the current market to have full ability to meet demand," says Yara Brazil Industrial Operations and Logistics Manager Rogério Naves.
"The main consumer market is in São Paulo, and to position ourselves as a major market supplier we must have cost competitiveness and be nearby”, concludes Gianni Canneti.