Yara wants to raise production of compost

Norwegian fertilizer company Yara International intends to undertake new partnerships and acquisitions to increase its production of fertilizers in Brazil. The latest investments were directed primarily to the distribution, with emphasis on the purchase of business of Bunge fertilizer in the country, in a transaction valued at $ 750 million.
With the deal, formalised in August, Yara became the leader in the domestic market of fertilizers, with a slice of around 25%. His presence in the country began to grow in 2000, when he bought the Clover Fertilizers. In 2006, reinforced the strategy, with the acquisition of Fertibras.
With units of Bunge, Yara is 32 mixers and three units of production of phosphatic fertilizer. But, in the evaluation of Lair Hanzen, President of Yara Brazil, there is still a large gap between what the company distributes and produces. The marketing planned for this year is 8 million tons, but the company produces in Brazil only 10% to 15% of this volume, said Hanzen. The Executive recalls that the country imports more than 60 percent of its demand.
Visiting the Cubatão, a former unit of Bunge, Yara's President and CEO Jorgen Ole Haslestad, International, said to the value that the company plans to continue growing in Brazil. Considered a promising market, the country will represent a third of the company's revenue after the inclusion of the results of Bunge.
The Executive didn't want to make estimates on expansion, but stated that the Yara's "attentive to opportunities," especially in nitrogenous fertilizer and phosphate segment in Brazil. "Depending on the development of the market, we want to acquire companies, do joint ventures. We are, in General, open to cooperation to establish the production activity here in Brazil, "he said.
Fertilizers represent 90% of the global business of the Norwegian, who also provides products and solutions for industrial process optimization, water treatment and prevention of emission of polluting gases. Last year, the company is present in 50 countries, had gross revenue of $ 14.5 billion and sold 20.7 million tons of fertilizers. Also in 2012, the Yara Brazil had net revenue of $ 3.73 billion. In the same period, the Bunge Fertilizantes grossed R $ 4.75 billion.
Although the production of potassium is not priority for Yara International, the company makes feasibility studies of two mines to exploration of the nutrient, one in the United States and another in Ethiopia. Second Haslestad, a decision on the continuity of the projects must be taken next year. The company also is prospecting a phosphorus mine in Finland, where it already operates a mine, and another in Canada. Currently, the Yara has (including joint ventures) little more than 100 agitators and 25 worldwide production.
Considered a leader in plant nutrition and listed on the Oslo Stock Exchange, Yara also foresees to invest about $ 10 billion in projects and technologies for nutrition of plants over the next four to six years.
The company also launched a global project to monitor carbon emissions in the fertilizer. The initiative, say executives, is part of a strategy to seek products with less environmental impact. The goal now is to obtain solutions for tropical soils, which is why the signed agreement with Yara Embrapa in 2012. The first stage of the partnership will be the study of different forms of nitrogen fertilizers to evaluate the efficacy and the carbon footprint in different cultures and regions.