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Yara signs Heads of Agreement with Deepak Fertilisers

06 Feb 2008 - Yara has signed a Heads of Agreement with Deepak Fertilisers and Petrochemicals Limited (DFPCL) based in Pune, India with the intention of establishing a joint venture company for production and marketing of technical ammonium nitrate and specialty fertilizers. Yara will own 49% of the planned joint venture.
 
The JV's objective is to develop the technical ammonium nitrate market (TAN) in India. The JV will include the 300,000 MT per annum TAN plant under construction at Paradip in Orissa on the east coast of India. Indian TAN consumption is approximately 400 kt per year and is growing at about 5-6% per annum, driven by strong coal demand for power generation. According to the company Deepak is the only major domestic producer of TAN, with a current installed capacity of 140 kt. The remaining demand is mostly met via imports. The heads of agreement will be converted into a final agreement after a due diligence and the necessary company and regulatory approvals.