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Yara and BASF Plan $600M U.S. Ammonia Plant

Norwegian fertilizer company Yara International has partnered with German-based BASF to invest $600 million for the set up an ammonia plant at BASF’s facility in Freeport, Texas. The project will include Yara’s building of a new ammonia tank at the BASF terminal and BASF’s upgrade of its current terminal and pipeline infrastructure to facilitate the export of ammonia from the new plant.

The plant, which is expected to be up and running in 2017, will have an annual capacity of approximately 750,000 metric tons. Ownership will be 68% Yara and 32% BASF and ammonia produced at the facility will be used by the two companies and split using the same shares. With its share, BASF plans to produce caprolactam, which is used in the manufacturing of nylons for various uses. Yara intends to market its share of ammonia to industrial and agricultural customers in North America.

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