Jordan/Norway: Potassium Nitrate Yara and Arab Potash Company Sign MoU
Yara and Arab Potash Company, the Jordan-based potash producer have signed an MoU for mutual cooperation in the field of potassium nitrate production and sales.
Oslo/Norway — Yara and Arab Potash Company will explore and evaluate the possibility of doubling the production capacity of Kempaco, the potassium nitrate producing subsidiary of APC. Accordingly Yara is targeting a minority position (30 %) in Kemapco with a 100 % distribution and marketing agreement. Potassium nitrate is a key product in solutions for fertigation, a fast growing segment the companies aim to develop further through this collaboration. Any final transaction will be conditional on the customary regulatory and corporate approvals.
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 $ 105 million.
Fertigation is the combined application of water and nutrients to a crop, a mix of fertilizer and irrigation in the same application. According to Terje Knutsen, EVP Crop Nutrition, Yara, the collaboration with will facilitate exchange of technology and know-how, and secure access to potassium nitrate that will strengthen their fertigation offering.