Oslo-Yara International ASA said Sept. 1 that it has agreed to establish a strategic partnership with China BlueChemical Ltd. to pursue growth opportunities in China. Yara said it will purchase up to a 3.2 percent ownership stake in the company in connection with its proposed initial public offering and listing on the Hong Kong Stock Exchange. “The partnership is a win-win for Yara and China BlueChemical that will harness each company’s experience and capabilities in nitrogen applications for the development of the Chinese markets,” said Yara President and CEO Thorleif Enger. “The partnership will create new opportunities for both parties, enable joint investments in competitive nitrate and/or NPK plants, and consequently expand the production, marketing and distribution of mineral fertilizers in the fast growing, high-margin domestic cash crop segment, and establish a platform for new projects in industrial applications.” China BlueChemical, a subsidiary of China National Offshore Oil Corp., focuses on the production of ammonia, urea, and methanol. It is one of the largest and most efficient producers of nitrogen fertilizers in China, with manufacturing plants that are conveniently located to serve both domestic and export markets and that benefit from proximity to energy sources and secure and stable feedstock supplies. It operates three modern production facilities, two of which are located on gas-rich Hainan Island, and one of which is located in Inner Mongolia. The Hainan Fudao plants incorporate Yara granulation technology. The plants were built between 1996 and 2003 and have a total designed annual urea production capacity of 1.8 million mt. China BlueChemical’s domestic sales network extends across 20 provinces and municipalities under the direct supervision of the central government of China. China is the world’s largest fertilizer market and accounts for a third of global urea consumption (45 million mt), growing at 8 percent per annum.
Transparency Across the Fertilizer Value-Chain