Sylvite Sales (USA) and Colombian fertilizer producer Abonos Colombianos S.A. (Abocol) have formed a 50-50 joint venture called Sylvite Western Region LLC. Based in California, the new company will market Abocol’s newly developed calcium nitrate production to the Western U.S. and Western Canada markets.
The announcement was made on July 22 by Hugh Loomans, president and CEO of Sylvite Holdings Inc., Burlington, Ont., and Jorge Bernal, president of Abocol, headquartered in Cartagena, Colombia. Lou Astbury, a 30-year fertilizer industry veteran, will serve as president of Sylvite Western Region LLC.
“We are pleased to be partnering with Abocol as both companies are committed to providing quality product and service,” said Loomans. “In addition, we are committed to expanding our business activity in the Western U.S. and Canada, a very important agricultural region with many high value crops. It is a perfect fit for our companies and calcium nitrate-based products.”
Sylvite West’s initial focus will be the marketing of calcium nitrate from Abocol’s expanded production facilities in Cartagena de Indias. As a marketing and distribution company, Sylvite West will eventually add additional products to its portfolio and also develop distribution locations, the companies said.
Loomans told Green Markets that there will soon be a Sylvite West office in California, but for now Astbury is working out of his home in Pleasanton, Calif. Loomans said the company anticipates hiring additional staff “once we get our feet on the ground and build some volumes.” At the present, Loomans said the new company’s billing and administration is being handled by Sylvite Terminal & Distribution LLC in Lakeland, Fla.
Asked about projected sales volumes for Sylvite West, Loomans said, “We do have some targets, but we plan to earn the business.”
Abocol completed an expansion and upgrade of its nitrogen fertilizer plants in Cartagena just last year, including a new 100,000 mt/y calcium nitrate granulation plant (GM Sept. 19, 2009). In addition to calcium nitrate, Abocol’s expansion included new facilities to produce nitric acid (83,000 mt/y) and ammonium nitrate solution (82,000 mt/y). Abocol said the US$46 million expansion was built in record time at only 17 months, and represents “a major investment – (that) complements Abocol’s already efficient crop nutrition and industrial products capacity.”
Abocol markets product both in the Americas and offshore, and to the agricultural and mining industries. Company total infrastructure annual capacity stands at ammonia (117,000 mt), nitric acid (266,000 mt), ammonium nitrate (240,000 mt), NPK compound fertilizers (300,000 mt), calcium nitrate (120,000 mt), liquid fertilizers (55,000 mt), blends (177,000 mt), hydrosolubles (15,000 mt), and foliar (500 mt). Abocol was founded in 1960.
The Sylvite Group of Companies is a strategic partner in providing supply chain value-added products and services to agricultural, industrial, and government customers in targeted geographic markets. Sylvite has established operations in Quebec and Eastern Canada, and for 18 years has been a partner in the U.S. business, with Sylvite Sales (USA)’s distribution focus in the Eastern U.S.
Sylvite says it has international access to a variety of products primarily related to nitrogen, potash, and phosphate, and three decades of experience bringing these items to agricultural and industrial customers. The company says it will continue to “systematically expand these core product and service competencies, increasing both the geographic reach and the market segments served by the business.”
Astbury served as vice president of the Western U.S. for Yara North America until June 2009, when he announced his retirement to pursue opportunities in consulting and independent market representation (GM June 22, 2009). Prior to Yara, Astbury worked for W.R. Grace Agricultural Chemicals and Borden Chemicals. He is a past co-chairman of the Western Plant Health Association, and has also served as president of the California Fertilizer Foundation.
In his new position with Sylvite West, Astbury can be reached at 925-216-0374, or by email at lou.astbury@sylvite.com.