Borealis Divests Stake in French Urea Facility
Borealis Chimie, French subsidiary of the Vienna-based petrochemicals and fertilizer producer, has divested its share in the 320,000 t/y urea plant at Le Havre and related ammonia storage facility at Gonfreville l'Orcher, both in France.
Following the divestment, the facilities will be wholly owned by Yara France, part of the Norwegian fertilizer producer of the same name.
Through the 2013 acquisition of GPN, subsequently renamed Borealis Chimie, Borealis also assumed the 52.15% stake in the Le Havre urea plant, which in turn has a 37.5% stake in the related ammonia storage facility.
Borealis said it is divesting its share to concentrate on its wholly owned industrial sites and, in the case of existing partnerships, to give precedence to less restrictive legal forms.
Following the divestment, Yara will continue to supply urea to Borealis during a transition period. The divestment will have no impact on the 940 Borealis employees.
The largest producer of nitrogen fertilizers in France, Borealis operates three production sites, at Grand-Quevilly, Grandpuits (nitrogen fertilizers) and Ottmarsheim (ammonia and nitric acid), as well as a storage site at La Rochelle.
A turnaround in progress at Grand-Quevilly is expected to improve the efficiency and reliability of the site and involves an investment of €60 million in the renewal and maintenance of equipment.
"Borealis has a clear commitment to growing our fertilizers business in Europe," said Markku Korvenranta, executive vice president base chemicals. "We believe that fertilizers in Europe are an economically sustainable and attractive area of activity and, we will continue to invest in our own assets to ensure reliable production and excellent customer service."
