Yara and China BlueChemical enter strategic partnership
Yara International ASA and China BlueChemical LTD have agreed to establish a strategic partnership to pursue growth opportunities in China. In connection with China BlueChemical's proposed initial public offering and listing on the Hong Kong Stock Exchange, Yara will purchase an up to 3.2 percent ownership stake in the Company at a price to be set in the IPO. Yara is the exclusive strategic investor in China BlueChemical's proposed IPO.
China BlueChemical, a subsidiary of China National Offshore Oil Corporation (CNOOC), adds value to the energy assets of the parent company by focusing on the production of ammonia, urea and methanol. The Company is one of the largest and most efficient producers of nitrogen fertilizers in China, with manufacturing plants that are conveniently located to serve both domestic and export markets and that benefit from close proximity to energy sources and from secure and stable feedstock supplies.
The Company operates three modern production facilities, two of which are located on the gas-rich Hainan Island and one of which is located in Inner Mongolia. The Company's Hainan Fudao plants incorporate Yara granulation technology. The plants were built between 1996 and 2003 and have a total designed annual urea production capacity of 1.8 million tonnes. China BlueChemical's domestic sales network extends across 20 provinces and municipalities under the direct supervision of the central government of China.
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