Yara signs contract to acquire Adubos Sudoeste’s blending unit in Catalão, Brazil
25.8.2016 14:28 | Yara
Porto Alegre, 25 August 2016: In a further step to expand its participation in the agricultural market in the Brazilian Midwest, Yara International ASA today announces the signing of an agreement for the acquisition of the fertilizers blending unit of Adubos Sudoeste in Catalão, in Goiás State. The investment is aligned with the company’s strategy to track the development of the agriculture market in Goiás – which has outgrown the national average in recent years.
Although part of the production may be sold to Tocantins State farmers, the focus of this unit will be rural producers in Goiás State, particularly growers of soybean, corn, beans, tomatoes, potatoes, onions and garlic.
According to Lair Hanzen, Senior VP of Yara International and President of Yara Brazil, the agricultural market in Goiás State – which is responsible for a huge part of the main Brazilian export crops, such as soybean and corn – is essential to the company's plans in the country.
"To invest in fertilizer distribution in Goiás is strategic for Yara and reinforces our commitment to provide the best solutions to Brazilian farmers. Besides that, we maintain the efforts to increase the fertilizer production in order to reduce the national dependence on imports of raw materials", says Hanzen.
Currently, the unit has a total capacity of 300 thousand tonnes per year. The acquisition depends on the approval of the Administrative Council for Economic Defense (Cade). Assuming the Cade approves the deal, Yara will begin the process of adapting the unit to the company’s standards.
This investment highlights Yara's commitment to Brazilian agriculture. In recent years, Yara has invested approximately USD 1.5 billion in the country, including the acquisition of Bunge Fertilizantes (2013), the joint venture with Galvani (2014), the construction and revitalization of the most moderns industrial blending units of Brazil, in Sumaré (SP) and Porto Alegre (RS), as well as the announcement of a substantial investment in its Rio Grande complex, made in the beginning of this year.
Juliana Marques, Media Relations – Brazil
Cellular: +55 51 3230.1430
Yara´s knowledge, products and solutions grow farmers’, distributors’ and industrial customers’ businesses profitably and responsibly, while protecting the earth’s resources, food and environment.
Our fertilizers, crop nutrition programs and technologies increase yields, improve product quality and reduce the environmental impact of agricultural practices. Our industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods. We foster a culture that promotes the safety of our employees, contractors and societies. Founded in 1905 to solve emerging famine in Europe, today, Yara has a worldwide presence, with close to 13,000 employees and sales to about 160 countries.
In Brazil, the company is headquartered in Porto Alegre with an office in São Paulo. To supply the agricultural segment, the company has three production units with granulation, acidulation and bagging of fertilizers and 25 blending terminals with bagging and distributing fertilizers, with presence in the main ports and agricultural production centres in the country.
In 2014, Yara has entered into an agreement to acquire a 60% stake in Galvani, and started a joint venture to produce e distribute about 1 million/tons of phosphate products. Through the agreement, Yara and Galvani are also developing new fertilizer production projects in the country, supporting to reduce dependence on imports.
In the segment of environmental solutions and industrial products, the company has five production and sales units. Its fertilizers portfolio - ranging from of blending beads to special products such as foliar fertilizers and NPK in granules - and nutrition programs to help produce the food required for the world's growing population. To maintain long-term growth outlook, Yara's research and development initiatives (R&D) are focused on sustainable agriculture and the search for new environmental solutions, such as reducing water use and application of the precise amounts of fertilizers to produce healthy and higher quality foods.
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