Under the partnership agreement, both the companies will explore and evaluate the possibility of doubling the production capacity of KEMAPCO, the potassium nitrate producing subsidiary of APC. Yara is targeting a minority position (30 per cent) in KEMAPCO with a 100 per cent distribution and marketing agreement for Yara.
Potassium nitrate is a major product in solutions for fertigation, a fast growing segment that Yara and Kemapco aim to develop further through this collaboration.
“Fertigation is the combined application of water and nutrients to a crop, a mix of fertiliser and irrigation in the same application. The collaboration with KEMAPCO will facilitate exchange of technology and know-how and secure access to potassium nitrate that will strengthen our fertigation offering,” said Terje Knutsen, executive vice-president for crop nutrition at Yara.
Kemapco is a subsidiary of the Arab Potash Company and operates a single potassium nitrate plant in Aqaba, Jordan. Production in 2017 amounted to 130 kt potassium nitrate, with sales amounting to about US$105mn.