The Biosuper brand, a phosphate-based dryer used in animal stables, and the related production equipment will be transferred to the new owner, Eliard SPCP, during the third quarter of 2014. This transaction will free up storage space for Borealis' fertilizer products at its warehouse in La Rochelle, France. Currently, Borealis sells around 150,000 tonnes of fertilizers each year from La Rochelle, where around 40 people are employed. The divestment has no personnel impact, as all current warehouse employees will be needed to handle the additional fertilizer volumes.
"The sale of the Biosuper business and equipment will enable a more efficient use of our assets at La Rochelle", states Gerald Papst, Borealis Vice President Business Unit Fertilizer. "Being able to handle an additional 10,000 tonnes of fertilizer annually will help us to further grow our business in France and ensure excellent service to our customers."
"The divestment of the Biosuper business is a strategic step we have taken to focus on our core fertilizer business in France," says Markku Korvenranta, Executive Vice President Base Chemicals. "Our stated commitment is to grow in Europe. This goal requires a firm focus on increasing efficiency along with reliability and safety."
Borealis is the largest producer of nitrogen fertilizers in France and employs approximately 940 people. In France, Borealis operates three production sites in Grand-Quevilly, Grandpuits and Ottmarsheim, as well as a storage site at La Rochelle.
Eliard-SPCP is a manufacturing and trading company of agricultural products (80/100,000 tonnes per year of fertilizers and 12 MEUR of seeds). Its subsidiary Fertemis specialises in the manufacturing of mineral granulated fertilizers N, NP, NK, PK, NPK, by mechanical cold-compaction (140,000 tonnes shipped during the 2013/2014 season). Both organisations achieved a turnover of 81 MEUR (fiscal year 2013/2014) and employ 83 people across four sites: Pontivy (56 headquarters), Luitré (35), Nantes (44), Mont Notre Dame (Fertemis operating site). Its customers are distributors (dealers and cooperatives) in France, Switzerland and Luxembourg. Eliard-SPCP's values are those of an independent family-owned SME: dynamic, resilient and knowledgeable. Eliard-SPCP has been selling Biosuper products for years and has strong industrial skills. The intended synergies will enable product innovations and new logistics facilities.
About Borealis in France
As the largest producer of nitrogen fertilizers in France, Borealis offers a range of products adapted to the needs of agriculture. With a total of around 940 employees, Borealis operates three production sites in France, Grand-Quevilly, Grandpuits and Ottmarsheim, as well as a storage site at La Rochelle. Borealis sites are located at the heart of important grain-producing regions.
In Grand-Quevilly, Borealis produces nitrogen fertilizers for agriculture. With a workforce of 380 people, the site has an annual production capacity of around 3.3 million tonnes. The industrial intermediates ammonia and nitric acid, which are used to produce fertilizers, are also sold in commercial volumes for use in the food and metallurgy industries, among others.
At its Grandpuits site, Borealis produces fertilizers for agriculture as well as solutions which reduce the NOx (nitrogen oxide) concentration in industrial and vehicular emissions. The plant also produces and sells industrial intermediates used not only in the production of nitrogen fertilizers, but in other industries as well. With a workforce of 220 people, the site has a production capacity of approximately 2 million tonnes per year.
In Ottmarsheim, Borealis produces ammonia and nitric acid. Portions are used on site as the raw materials in fertilizer production. The remaining ammonia and nitric acid volumes are sold as industrial agents used for example in the manufacture of synthetic fibres (adhesives, carpets and more) and high-performance technical plastics (automotive parts, rollers, IT and home stereo equipment etc.). Borealis Ottmarsheim has an annual capacity of over 1.1 million tonnes and employs approximately 180 people.
Borealis sells around 150,000 tonnes of fertilizers each year from its La Rochelle storage site, where around 40 people are employed.
There are 120 employees located in Paris, including commercial and corporate functions such as Finance, Health, Safety & Environment, Human Resources and Information Technology.
Borealis (borealisgroup.com) is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. This year, Borealis already celebrates its 20th anniversary. With headquarters in Vienna, Austria, Borealis currently employs around 6,400 and operates in over 120 countries. It generated EUR 8.1 billion in sales revenue in 2013. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% owned by OMV, the leading energy group in the European growth belt. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).
Building on its proprietary Borstar® and Borlink™ technologies and 50 years of experience in polyolefins, Borealis and Borouge support key industries including infrastructure, automotive and advanced packaging.
The Borouge 3 plant expansion in Abu Dhabi will be fully operational in 2014. Borouge 3 will deliver an additional 2.5 million tonnes of capacity when fully ramped up, bringing the total Borouge capacity to 4.5 million tonnes. Borealis and Borouge will then have approximately 8 million tonnes of polyolefin capacity.
Borealis offers a wide range of base chemicals, including melamine, phenol, acetone, ethylene, propylene, butadiene and pygas, servicing a wide range of industries. Together with Borouge the two companies will produce approximately 6 million tonnes of Base Chemicals in 2014.
Borealis also creates real value for the agricultural industry with a large portfolio of fertilizers. The company distributes approximately 2.1 million tonnes per year. This volume will increase to more than 5 million tonnes by the end of 2014.
Borealis and Borouge aim to proactively benefit society by taking on real societal challenges and offering real solutions. Both companies are committed to the principles of Responsible Care®, an initiative to improve safety performance within the chemical industry, and contribute to solve the world's water and sanitation challenges through product innovation and their Water for the World™ programme.
For more information visit borealisgroup.com | borouge.com | waterfortheworld.net
Borstar is a registered trademark of the Borealis Group.
Borlink and Water for the World are trademarks of the Borealis Group.