MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, has announced 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, as per the company's press release.
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.
As MRC informed previously, Borealis got the first drops of ethylene flowing in late May from a plant expansion in the emirate costing more than USD4 billion. The expansion project began in 2009. Annual capacity at Borouge, about 155 miles (250 kilometers) from the city of Abu Dhabi, will more than double to 4.5 million tons from 2 million tons of ethylene and the derivative polyethylene and polypropylene plastics used in car parts and packaging.
Yara delivers solutions for sustainable agriculture and the environment. Founded in Norway in 1905, Yara has a worldwide presence with sales to 150 countries.
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. The only polyethylene (PE) producer in Sweden, Borealis’ Stenungsund facilities include a PE plant, a cracker for ethylene and propylene production, and an innovation center focused on research and development for infrastructure markets.
MRC