Norwegian firm Yara International ASA and Germany-based BASF have agreed to set up an ammonia plant at the BASF site in Freeport, Texas, involving an investment of $ 600 million. As part of the project, Yara will build an ammonia tank at the BASF terminal and BASF will upgrade its current terminal and pipeline assets for the export of ammonia from the new plant - which is expected to come online in 2017.
"I am very pleased to be here today, initiating the construction of an important investment for Yara - alongside our partners at BASF. The building of the Freeport ammonia plant is a firm demonstration of how we deliver on our growth strategy," said Torgeir Kvidal, president and CEO of Yara, while attending groundbreaking ceremony for the new ammonia plant.
The plant will have a capacity of about 750,000 metric tonnes per year and will be owned 68 percent by Yara and 32 percent by BASF. Each party will off-take ammonia from the plant in accordance with its equity share. BASF will use its share of ammonia from the plant to produce caprolactam, a key ingredient in the manufacture of nylons for carpet, textiles, film, monofilaments, and wire and cable. Yara will market the remainder mostly to industrial customers in North America, in addition to supplying the agricultural sector.
"I am very pleased to be here today, initiating the construction of an important investment for Yara - alongside our partners at BASF. The building of the Freeport ammonia plant is a firm demonstration of how we deliver on our growth strategy," said Torgeir Kvidal, president and CEO of Yara, while attending groundbreaking ceremony for the new ammonia plant.
The plant will have a capacity of about 750,000 metric tonnes per year and will be owned 68 percent by Yara and 32 percent by BASF. Each party will off-take ammonia from the plant in accordance with its equity share. BASF will use its share of ammonia from the plant to produce caprolactam, a key ingredient in the manufacture of nylons for carpet, textiles, film, monofilaments, and wire and cable. Yara will market the remainder mostly to industrial customers in North America, in addition to supplying the agricultural sector.
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