Singapore-based Indorama Corp. Pte. Ltd. has acquired a 99.02% stake in Uzbekistan nitrogen fertilizer producer JSC Farg’onaazot according to a report by Fertilizer Daily, citing the press-service of Uzbekistan’s State Assets Management Agency.
Indorama paid $140 million for the assets, and also has pledged to invest $100 million in the modernization of the Farg’onaazot facilities.
The Ukbez producer’s capacity includes 475,000 mt/y for ammonia, 400,000 mt/y for urea, 550,000 mt/y for ammonium nitrate, and 16,500 mt/y for superphosphate, as well as production capacity for liquid complex fertilizers and NPK fertilizers and a range of chemicals and industrial gases, according to Farg’onaazot’s website.
Last month, Indorama – via subsidiary company Excelus Holdings LLC, Georgia – acquired 100% shares in JSC Rustavi Azot Georgia from JSC EUI Investments (GM Jan. 20, p. 27). Indorama said Rustavi is one of the largest producers of fertilizers and industrial chemical products in the Caucasus region.
In its Jan. 12 statement announcing the purchase of the Georgian fertilizer company and plans for modernization of the plant, Indorama said the acquisition marks another important step towards its long-term commitment to the fertilizer sector.
This latest acquisition in Uzbekistan may also demonstrate the Singapore corporation’s plans to expand its fertilizer supply presence in the CIS markets.