Kemira GrowHow and Terra Industries Announce UK Joint Venture
Kemira GrowHow Oyj and Terra Industries Inc. announced that they have entered into a Memorandum of Understanding which sets out their agreement in principle to create a new joint venture to operate the fertiliser and associated process chemicals businesses of both companies in the United Kingdom.
The Memorandum of Understanding is a non-legally binding agreement and is subject, inter alia, to clearance from the UK competition authorities, negotiation of definitive documents and lender consent. It is not subject to the approval of shareholders in either Kemira GrowHow Oyj or Terra Industries Inc.. The proposed joint venture is designed to secure a sustainable, long-term base for manufacturing fertiliser and process chemicals in the UK. Both businesses produce ammonium nitrate, which is the main nitrogen fertiliser consumed in the UK.
The proposed joint venture is expected to be held 50/50 by Kemira GrowHow and Terra Industries and to own and operate the site of Kemira GrowHow UK Limited at Ince and the sites of Terra Nitrogen (UK) Limited's facilities on Teesside and Severnside.
Through the proposed joint venture, Kemira GrowHow and Terra Industries expect to create significant cost and operational synergies that would enhance their ability to service and compete in increasingly challenging markets.
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