Completion of UK Joint Venture between Terra Industries Inc. and Kemira GrowHow Oyj
Friday September 14, 8:06 am ET
SIOUX CITY, Iowa--(BUSINESS WIRE)--Terra Industries Inc. and Kemira GrowHow Oyj are pleased to confirm the formation of a joint venture company, GrowHow UK Limited, combining their fertilizer and associated process chemicals businesses in the United Kingdom and the Republic of Ireland. Completion of the joint venture follows confirmation from the UK Competition Commission that it has concluded its review and approved the transaction.
The move is designed to secure a sustainable, long-term base for manufacturing fertilizer and process chemicals in the UK. The combined business will produce ammonium nitrate, which is the main nitrogen fertilizer consumed in the UK as well as compound fertilizers to service both the UK and Ireland markets.
Mike Bennett, President and CEO of Terra Industries Inc. ("Terra") said, "We are pleased that the Competition Commission has concluded its review and approved the formation of our joint venture. It will enable us to continue to provide high quality products and services to our customers, and will significantly expand our opportunities. By securing a long-term manufacturing base in the UK, we are investing in the future."
Heikki Sirvio, CEO of Kemira GrowHow Oyj ("Kemira GrowHow"), said, "Our new joint venture will position our combined UK fertilizer and process chemicals operations to achieve long-term success by reducing overheads and allowing us to optimize our product mix. We are pleased that the Competition Commission has approved the joint venture and would like to thank our customers and other stakeholders for their support during the review."
GrowHow UK Limited will be owned 50/50 by Kemira GrowHow and Terra and will include Kemira GrowHow's site at Ince, and Terra's sites on Teesside and Severnside. The annual turnover of the operations included in the joint venture exceeded 500 million euros in 2006. Through the joint venture, Kemira GrowHow and Terra expect to create significant cost and operational synergies to enhance their ability to service and compete in increasingly challenging markets.
Kemira GrowHow UK Limited is the largest UK producer of compound fertilizers and Terra Nitrogen (UK) Limited is the largest UK producer of ammonium nitrate.
Lazard is acting as financial adviser to Terra. Lehman Brothers is acting as financial adviser to Kemira GrowHow.
Terra Industries Inc., with 2006 revenues of $1.8 billion, is a leading international producer of nitrogen products. It employs approximately 1,200 people in North America and the UK and is listed on the New York Stock Exchange.
About Kemira GrowHow
Kemira GrowHow Oyj is one of the leading producers of fertilizer and feed phosphates in Europe. Kemira GrowHow develops and markets fertilizers and integrated solutions for crop cultivation, animal feed supplements and chemicals required in various industries. The group has approximately 2,500 employees worldwide and in 2006 net sales were 1.2 billion euros. Kemira GrowHow Oyj is listed on the Helsinki Stock Exchange.
Source: Terra Industries Inc.
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