Yara International ASA, Oslo, announced on Dec. 11 that it is simplifying its operating model. The members of Yara executive management remain the same following these changes. Yara’s activities will be structured within three segments, effective Jan. 1, 2019.
The Sales & Marketing segment will be led by Executive Terje Knutsen. The segment will comprise all of Yara’s existing Crop Nutrition business units, in addition to the following business units, which are transferred from the former Industrial segment: Base Chemicals, Industry Reagents, and Animal Nutrition (excluding South Africa).
The Production segment is unchanged, and will continue to be led by Executive Vice President Tove Andersen.
The New Business segment will be led by Executive Vice President Yves Bonte. The segment will comprise the following units: Two businesses will be established to commercialize innovation within decarbonization and circular economy, in collaboration with the other Yara segments, as well as a separate business unit for autonomous logistics operations, including the Yara Birkeland autonomous electric ship project; and a portfolio of businesses that will be operated more independently with distinct strategies – Environmental Solutions, Mining Applications, Animal Nutrition South Africa, and Industrial Nitrates.
Yara will continue to actively manage its portfolio of businesses. However, it said it is currently undertaking a process to evaluate strategic options for the Environmental Solutions business.
“Earlier this year, we set out our strategy as the crop nutrition company for the future, and we are now adapting and simplifying our operating model accordingly. Following a period of substantial investments, our main focus going forward will be on operational excellence, innovation, and growing scalable crop nutrition solutions,” said Yara President and CEO Svein Tore Holsether.
“Our crop nutrition focused strategy naturally also includes a strategic evaluation of businesses that are further away from Yara’s core, to determine the most value-creating way forward for these, either within or outside Yara,” he added.