(09:08 GMT) *Yara Agrees to Buy Gulf Coast Ammonia's Texas Ammonia Production Facility For $1.3B (09:09 GMT) *Yara: Deal Diversifies Energy Exposure, Enhances Competitiveness of Global Ammonia Production Footprint (09:11 GMT) *Yara: Plant Is in Commissioning, Seen Ramping Up Toward Full Production and Stable Ops by End 2026 (10:19 GMT) Yara to Buy Texas Ammonia Plant For $1.3 Billion
By Dominic Chopping
Norwegian fertilizer producer Yara International agreed to buy an ammonia production facility in Texas City, Texas, for $1.3 billion as it moves to broaden its manufacturing footprint.
The company said Thursday that it will buy the facility from Gulf Coast Ammonia, a chemical manufacturing company owned by Lotus Infrastructure Partners and MB Energy that is developing the plant.
Construction of the Texas City plant began in 2020 and will have a production capacity of around 1.3 million metric tons of ammonia a year. It will produce liquid ammonia--a chemical widely used in fertilizer--from hydrogen and nitrogen gases.
Air Products will supply the industrial gases to Yara as part of a long-term supply agreement, it said.
"By bringing this plant into the Yara portfolio, we are strengthening our operational resilience and diversifying our energy costs at a time when supply flexibility matters more than ever," Yara Chief Executive Svein Tore Holsether said.
"This addition of world-class U.S. production capacity supports our long-term strategy of diversifying our energy exposure, capturing economies of scale, and lowering both fixed costs and capital per tonne," he added.
The plant is currently in commissioning and is expected to continue ramping up toward full production and stable operations by the end of 2026.
Write to Dominic Chopping at dominic.chopping@wsj.com