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Yara and Arab Potash Company enter into MoU on potassium nitrateYara and Arab Potash Company, the Jordan-based potash producer have recently signed an MoU for mutual cooperation in the field of potassium nitrate production and sales. The parties will explore and evaluate the possibility of doubling the production capacity of Kemapco, the potassium nitrate producing subsidiary of APC, and accordingly Yara is targeting a minority position (30%) in Kemapco with a 100 % distribution and marketing agreement for Yara. Potassium nitrate is a key product in solutions for fertigation, a fast growing segment that Yara and Kemapco aim to develop further through this collaboration.
"With this MoU we are pleased to establish a collaboration of strategic value. Our farmer centric approach means that we offer a full range of nutrients and solutions to meet farmers needs in all climates and for all soils. Fertigation is the combined application of water and nutrients to a crop, a mix of fertilizer and irrigation in the same application. The collaboration with Kemapco will facilitate exchange of technology and know-how, and secure access to potassium nitrate that will strengthen our fertigation offering," said Terje Knutsen, EVP Crop Nutrition, Yara.
Kemapco is a subsidiary of the Arab Potash Company, and operates a single potassium nitrate plant in Aqaba, Jordan. Production in 2017 amounted to 130 kt potassium nitrate, with sales amounting to about USD 105 million.
"The signing represents an important step in the plan to grow our business, we believe that our high quality product will be a great fit for the growing potassium nitrate demand. We are pleased to have the opportunity to grow our business with Yara's extensive sales network." said Jamal Al-Sarayrah, Chairman of the Board of Directors, Arab Potash Company.
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Publication date: 2/23/2018
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