Deepak Fertilisers in ammonium JV with Norway's Yara

By Our Corporate Bureau | 07 Feb 2008

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Mumbai: Deepak Fertilisers & Petrochemicals Corp Ltd (DFPCL) has entered into a joint venture with Norway's Yara International ASA to produce and market ammonium and specialty fertilisers in India.

Pune-based Deepak fertilisers will have 51 per cent in the JV with Yara holding 49 per cent stake. The joint venture will produce and market technical ammonium nitrate and specialty fertilisers.

The JV, which plans to develop the technical ammonium nitrate market in India, will include the 300,000 tonnes per annum TAN plant under construction at Paradip in Orissa.

TAN consumption in India is growing at about 5-6 per cent per annum, driven by strong coal demand for power generation.

According to the company, Deepak is the only major domestic producer of TAN, with a current installed capacity of 140 kilo tonnes. The remaining demand is mostly met via imports.

The two companies have signed a head of agreement which would be converted into a final agreement after a due diligence and the necessary approvals.

Ammonium nitrate is mainly used to produce explosives for the mining industry and in coal production.

Yara International ASA is a $14 billion fertiliser and specialty chemicals major.

"India has the world's third biggest coal reserves and Yara has proven strengths in safety, production, logistics and expertise in the use of technical ammonium nitrate for explosives (TAN)," said Thorlief Enger, president and CEO, Yara International ASA.

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