Tata Chemicals invest $ 290 million in fertilizer complex

Tata Chemicals to invest $ 290 million in a fertilizer complex

1:54 PM, 27th May 2011
Tata Chemicals to invest $ 290 million in a fertilizer complex
R Mukundan, Managing Director, TCL.

MUMBAI, INDIA: Tata Chemicals will invest $ 290 million to acquire a 25.1-per-cent stake as a strategic investor in the stream 1 of a greenfield, port-based, ammonia-urea fertiliser manufacturing complex in the Republic of Gabon. The balance of shareholding is held between Olam International at 62.9 per cent and Republic of Gabon at 12 per cent.

 

This is a successful culmination of the accord entered into, between Olam and RoG to set up a 1.3mtpa urea plant based on gas supply at competitive fixed price for 25 years, wherein the partners having equity in the ratio of 80:20 had the option of bringing in a strategic investor who could have a 25.1-per-cent share in the company through sell-down by Olam and RoG. Combined, the project is envisaged to have a capacity of 2.6 million metric tons per annum.

 

“This plant is envisaged to be one of the lowest-cost urea manufacturing facilities globally. Strategically located near Gabon’s main seaport, it also enables efficient and cost-effective material handling and proximity to target markets ie Africa, North America, Latin America and India. Up to 25 per cent of the production would be reserved for sales in India, subject to de-canalisation. This is a value accretive project with expected yearly Ebitda of $ 300 million to $ 350 million per stream. We believe this project will fill the gap of growing agri-inputs need in Africa, Latin America and Asia,” said R Mukundan, Managing Director, TCL.

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