Borealis divests joint-ownership share in Le Havre urea production plant and related ammonia storage facility
Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, announces that its French subsidiary Borealis Chimie divests its joint-ownership share in the Le Havre urea production plant and related ammonia storage facility at Gonfreville l’Orcher, France. Following the divestment, the plant and related storage facility will be fully owned by Yara France, who already owns the remaining share and operates these facilities. Through the 2013 acquisition of GPN SA, subsequently renamed Borealis Chimie SAS, Borealis also assumed the 52.15% joint-ownership share in the Le Havre urea plant, which has an annual production capacity of 320,000 tonnes, and a 37.5% stake in the related ammonia storage facility. Borealis management has now taken the decision to divest its joint-ownership share in order to concentrate on its 100%-owned industrial sites and, in the case of existing partnerships, to give precedence to less restrictive legal forms. The divestment also includes the supply of urea by Yara to Borealis during a transition period in order to ensure continuity in product delivery. The divestment will not have an impact on Borealis employees.
"The strategic decision to conclude this transaction with Yara allows us to concentrate on our wholly-owned fertilizer production locations in France," explains Gerald Papst, Borealis Vice President Business Unit Fertilizer.
Borealis is the largest producer of nitrogen fertilizers in France and employs approximately 940 people. Borealis in France operates three production sites in Grand-Quevilly, Grandpuits and Ottmarsheim, as well as a storage site at La Rochelle. A turnaround currently in progress at Borealis Grand-Quevilly will improve the efficiency and reliability of the site and involves an investment of EUR 60 million in the renewal and maintenance of equipment.
"Borealis has a clear commitment to growing our fertilizers business in Europe," states Markku Korvenranta, Executive Vice President Base Chemicals. "We believe that fertilizers in Europe are an economically sustainable and attractive area of activity, we will continue to invest in our own assets to ensure reliable production and excellent customer service."
For further information please contact:
Director Communications, Borealis Group
Tel. +43 (0)1 22 400 389 (Vienna, Austria)