Yara buys ammonia factory in the US for US$ 1.3 billion

Yara announced this Thursday (2) the purchase of the ammonia factory from Gulf Coast Ammonia (GCA), in Texas City, in the state of Texas (USA), for US$ 1.3 billion. According to the company, the operation expands the multinational's presence in the North American market and strengthens its strategy of ensuring greater competitiveness in the global supply of ammonia, an essential raw material for the production of nitrogen fertilizers.

The unit, which is in the testing phase, has the capacity to produce 1.3 million tons per year. The company's expectation is that the plant will reach stable operation by the end of 2026 and, subsequently, produce above projected capacity.

According to Yara, the acquisition will allow it to diversify exposure to energy costs, as the factory will use natural gas from the American market, reducing dependence on other producing regions.

"With this plant, we strengthen our operational resilience and diversify our energy costs at a time when supply flexibility is more important than ever," said the company's president and CEO, Svein Tore Holsether, in the statement.

Global strategy
In addition to supplying industrial customers, the new unit will also be used to meet part of Yara's internal demand for ammonia, reinforcing the company's global fertilizer production chain.

The acquired structure includes the ammonia synthesis unit, storage tanks and charging infrastructure. Yara stated that the operating model is similar to the one already used by the company in Freeport, also in Texas, where the company records high levels of operational efficiency.

Expansion in the United States
The acquisition reinforces Yara's commitment to the American market, considered strategic by the company both due to its supply of natural gas and its proximity to important consumer centers for fertilizers and industrial products.

According to the company, the plant may also, in the future, produce low-carbon ammonia, depending on the evolution of regulatory rules and the economic viability of decarbonization projects.

Financial impact
The purchase will increase Yara's investments (capex) in 2026 to US$ 2.5 billion. Even so, the company stated that the operation is aligned with the strategic plan presented to the market at the beginning of this year and maintains its policy of financial discipline.

Conclusion of the deal still depends on regulatory approval and compliance with the usual conditions for this type of transaction.

Source: CNN