Agribusiness

Incitec Pivot pays $20M for Yara Nipro fertilisers

Grain Central, August 24, 2022

Yara’s plant at Boundary Bend near the Murray River in Victoria. Photo: Yara Australia

INCITEC Pivot Fertilisers (IPF) has today announced it has reached an agreement with Yara Australia to acquire the Yara Nipro liquid fertiliser business in Australia.

Incitec Pivot Limited (IPL) managing director and CEO Jeanne Johns said Yara Nipro is complementary to IPF’s broader business, and the purchase of its operations will provide excellent liquid-fertiliser options and enhanced security of supply for farmers in eastern Australia.

“We are excited to add both the products and the expertise of Yara Nipro to our IPF team, and remain committed to supporting manufacturing in regional areas,” Ms Johns said.

Yara Nipro sites are located at Moree and Whitton in New South Wales, and Boundary Bend in Victoria.

“IPF will continue to invest in its Easy Liquids product range, which now includes the Nipro range, as farmers and agronomists increasingly look to capitalise on the significant productivity and sustainability benefits delivered by liquid fertilisers.”

These products can be stored on farm without the risk of deterioration, and reduce the need for manual handling.

They also allow for custom and precision application of nutrients, leading to more cost effective and sustainable plant-nutrition solutions.

“Adapting to changing conditions is a way of life for Australian farmers, so the flexibility and options around when, how and in what combination liquid fertilisers can be used is a real draw card for farmers and agronomists.”

“IPF is making an investment of circa $20 million,” IPF chief financial officer Chris Opperman said.

“The acquisition comes as IPL advances its proposed separation plans that would make IPF a standalone business,” Mr Opperman said.

“The addition of Yara Nipro to IPF is entirely in line with plans to expand the business and seize opportunities that will see it thrive following the proposed separation,” Ms Johns said.

IPF is Australia’s largest onshore manufacturer of plant-nutrition products.

The acquisition is subject to clearance from the Australian Competition and Consumer Commission.

Yara retains Pilbara project

Yara first acquired an interest in Yara Nipro in 2008 and moved to full ownership in 2011.

Yara has stated a review of its operations deemed the liquid fertiliser business as no longer fitting with its growth strategy in Australia.

“This transaction does not affect the other parts of our business operations in Australia,” Yara executive vice president Africa & Asia Fernanda Lopes Larsen said.

“The Pilbara plant will continue in its operations and focus on our upcoming project in renewable hydrogen.”

The Australian Government last year provided a $42.5M to Yara Pilbara and ENGIE to build one of the world’s first industrial-scale renewable hydrogen-production operations.

Being built within the existing Yara Pilbara ammonia plant, it is scheduled for completion next year.

The first phase of the Yara Pilbara project will see the construction of a 10 megawatt electrolyser, on-site photovoltaic panels and a battery-storage system that will allow the plant to operate without being connected to the main electrical grid.

It will produce up to 625 tonnes of renewable hydrogen and 3700 tonnes of green ammonia per year.

“Yara Australia will refocus on its core business development activities and transformation efforts to advance farming towards a more sustainable climate-positive food future.“

Yara Australia will continue to develop and distribute a premium range of products in Australia for dry application, the fertigation segment and foliar micronutrients.

Source: Incitec Pivot Limited, Yara Australia

 

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