Tessenderlo Kerley International (TKI) will build a new liquid fertilizer plant in Western Europe, Tessenderlo Group said on March 25.
Upon receiving the necessary permits and approvals, TKI will begin the construction of a Thio-SulR (ammonium thiosulfate) manufacturing plant in Geleen in the Netherlands. The plant is currently scheduled to start production in the second quarter of 2023.
Tessenderlo Group Executive Chairman, CFO, and COO Stefaan Haspeslagh told analysts at a company earnings call on March 25 the reasoning behind the choice of location for the new plant.
“The reason we want to build the plant at Geleen is because we have raw materials – including ammonia and sulfur – available in the vicinity. Secondly, Geleen is situated in an industrial chemical park where facilities are available, and thirdly, Geleen is situated in the middle of our market where we have an easy connection by truck, rail, and barge.”
Responding to an analyst’s question, Haspeslagh said the company would ensure it will take care that it has long-term supply contracts in place for the raw materials for the new Thio-Sulplant.
As previously reported, TKI is also studying a major Thio-Sul investment in the Eastern European/CIS region to support qualitative and productivity increases of agriculture in that region (GM Feb. 26, p. 38; Feb. 19, p. 37). Tessenderlo is evaluating whether Grodno, in western Belarus, would be a good location for such a plant.
“Now countries like Belarus and Ukraine are considered quite important for the future of Ag, and so we want to participate in making sure that productivity can increase by applying our products and that we can have a better quality,” Haspeslagh told analysts.
TKI and Finland’s Kemira Oyj have signed a long-term partnership agreement for SOP in late August last year (GM Aug. 28, 2020). Under the terms of the agreement, Kemira will produce premium SOP fertilizers (both standard and water-soluble grades) at its plant in Helsingborg, Sweden, and Tessenderlo Kerley will market these products. The agreement was scheduled to become operational at the beginning of 2021.
No details were disclosed on volumes involved.
Haspeslagh told analysts only that the company is “very satisfied” with the contract because it adds some grades of product that Tessenderlo does not have in its portfolio.
Tessenderlo Group said it created a new growth unit, “Violleau” in the first quarter of 2021, to support the growth of organic agricultural solutions in Europe. This growth unit will be part of the Bio-valorization segment. The company bought the remaining share of the French Violleau company a couple of years ago. The French company transforms C2 material from Akiolis Group, a Tessenderlo company, into fertilizer.