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May 8, 2014

BASF and Yara plan to build ammonia plant in Freeport

Gerald Ondrey

BASF SE (Ludwigshafen, Germany; www.basf.com) and Yara (Osöo, Norway; www.yara.com) have made good progress with their plan to jointly build a world-scale ammonia plant on the U.S. Gulf Coast. The proposed plant would be located at the existing BASF site in Freeport, Texas, have an annual capacity of 750,000 metric tons, and be based on a hydrogen-synthesis process. Further details of the planned joint venture are currently under discussion between the parties. The project is subject to final approval from the respective boards of directors of BASF and Yara.

BASF, which has a strong presence in the U.S., is currently a major user of ammonia for its U.S. downstream activities and intends to further strengthen its backward integration. Yara, with its global ammonia network and market expertise, seeks to strengthen its presence in the U.S.

 

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