Yara has approved a study to increase production in Porsgrunn. The study will be completed in the third quarter of next year and will provide the Board with a basis for decisions on increasing the production of nitric acid, calcium nitrate and NPK fertilizer in Porsgrunn.
"If the investment goes ahead, it will also have positive effects for the facility at Glomfjord, since any surplus nitric acid can be transferred there and will help boost production. This will enable Yara to meet the growing demand for high-quality fertilizer products in overseas markets," says Per Knudsen, Yara's Facilities Manager at Porsgrunn (pictured).
This project has been proposed now that the three-year, NOK 300 million expansion of NPK Fertilizer Factory 4 is reaching its completion.
Gratifying "It is gratifying that Porsgrunn is considered to be an attractive place for investment, which further consolidates the position of Porsgrunn as the world's largest production site of both NPK fertilizer and calcium nitrate and one of Yara's central facilities," Knudsen emphasises.
The new facility will have an annual production capacity of approximately 330,000 tonnes of nitric acid. In consequence, Yara's annual production capacity for calcium nitrate will increase from 630,000 tonnes to 840,000 tonnes. Production of NPK fertilizer will also increase by approximately 50,000 tonnes a year.
Knudsen explains, "This expansion will enable us to send nitric acid to Glomfjord, where they will be able to increase production of NPK fertilizer by 70,000 tonnes and calcium nitrate by 35,000 tonnes. Other facility sites will also be able to use some of the surplus acid from Porsgrunn".
Local participation The study is being managed by Yara's project office in Brussels but involves significant local participation from both Yara and contracted experts.
Per Knudsen points outs, "A number of new job opportunities are expected to open up if these projects are implemented, but most importantly this investment will provide Yara Porsgrunn with long-term stability".
The final decision about the investment is expected to be made in the third quarter of 2014. If the decision is made to go ahead, construction will commence in 2015 and will be completed in 2016/2017.