Sioux City, Iowa-The UK Competition Commission on July 11 approved the joint venture planned by Kemira GrowHow Oyj and Terra Industries Inc. to combine the fertilizer and associated process chemicals businesses of both companies in the United Kingdom. The approval is conditional upon the divestment of certain process chemicals businesses – which account for less than 3 percent of sales of the planned joint venture – as well as upon amendment of certain terms in the agreements for supply of carbon dioxide at Ince. The planned joint venture is designed to secure a sustainable, long-term base for manufacturing fertilizer and process chemicals in the UK, the companies said. Both businesses produce ammonium nitrate, which is the main nitrogen fertilizer consumed in the UK. The joint venture will be owned 50/50 by Kemira GrowHow and Terra, and will include the site of Kemira GrowHow at Ince and of Terra on Teesside and Severnside. The annual turnover of the operations included in the joint venture exceeded 500 million euros in 2006. Through the joint venture, both companies said they expect to create significant cost and operational synergies that would enhance their ability to service and compete in increasingly challenging markets. “We are pleased with this conclusion, which will enable us to start this joint venture and continue to provide high quality products and services to the agricultural and industrial customers of both our companies,” said Heikki Sirviö, CEO of Kemira GrowHow. “We have worked closely with the Competition Commission and expect to satisfy their conditions soon so that we can start the joint venture,” added Mike Bennett, Terra president and CEO. “We continue to believe that the proposed joint venture represents the best way forward for our UK business and customers.
Transparency Across the Fertilizer Value-Chain