Yara JV Qafco signs letter of intent for expansion
(Thomson Reuters ONE) - Oslo (2009-10-12): Qatar Fertiliser Company (Qafco) has signed aletter of intent for the construction of the Qafco-6 expansionproject. The cost of the project is estimated at USD 610 million.A letter of intent between Qafco and a consortium of the Italiancompany Saipem and the Korean company Hyundai has been signed for theEPC (Engineering, Procurement and Construction) of the Qafco-6expansion project. Yara International ASA owns 25% of Qafco, theremaining 75% is owned by Industries Qatar.The Qafco-6 project includes the construction of a urea plant with atotal daily production capacity of 3,850 tons. The construction workis scheduled to take approximately 35 months with the completionaround the end of third quarter 2012.The consortium of Saipem and Hyundai is currently constructing theQafco-5 project comprising two ammonia plants with a total dailyproduction capacity of 4,600 tons, and a urea plant with a totaldaily production capacity of 3,850 tons with completion expected byend of first quarter 2011. By choosing the same constructionconsortium and design for Qafco-6 as for Qafco-5, major costsynergies are captured from the consortium already having resourcesmobilized at site and reuse of experience.Upon completion of the Qafco-6 project, Qafco's total annualproduction capacity will increase to around 3.8 million tons ofammonia and 5.6 million tons of urea. Qafco strengthens its positionas the world's largest single site producer of ammonia and urea."Qafco is a long standing and successful partnership, and theexpansion will further strengthen Yara's production base withcompetitive gas sourcing. The investment cost for Qafco-6 benefitsfrom cost synergies with the ongoing Qafco-5 project. Qafco's scaleand competitive gas sourcing combined with Yara's global marketingnetwork forms a strong foundation for profitable expansion," saysPresident and CEO of Yara International, Jørgen Ole Haslestad.The project will be partially financed with bank loans by Qafco, withthe balance coming from Qafco's existing reserves and cash flows fromits operations.ContactTorgeir Kvidal, Investor RelationsTelephone (+47) 24 15 72 95Cellular (+47) 91 339 832E-mail torgeir.kvidal(at)yara.comAsle Skredderberget, Media RelationsCellular (+47) 41 443 610E-mail asle.skredderberget(at)yara.comYara International ASA is the world's leading chemical company thatconverts energy, natural minerals and nitrogen from the air intoessential products for farmers and industrial customers. As thenumber one global supplier of mineral fertilizers, we help providefood for a growing world population. Our industrial product portfolioincludes environmental protection agents that prevent air pollution.Yara's global workforce of 8000 employees represents the greatdiversity and knowledge that enables Yara to remain a leadingperformer in the industry.www.yara.comThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 12.10.2009 - 08:07 Uhr
Sprache: Deutsch
News-ID 6787
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