Yara has increased its indirect ownership position in Chilean specialty fertilizer company SQM strengthening its position in the specialty fertilizer market.
Since 2001 Yara has had a global marketing agreement with Chilean specialty fertilizer company SQM, which has been very successful for both parties. Since 2002 Yara has also been an indirect owner of SQM through the Chilean companies Pampa Calichera and SQYA. Since Yara’s acquisition of shares in 2002, the market value of the SQM shares has almost doubled.
Through a series of transactions in December and January, Yara and partners have increased their equity holding in SQM from 20.8% to 24.9% giving the group the same ownership percentage in SQM as the other main shareholder, the Canadian fertilizer company PCS.
“Yara and SQM’s products together provide our customers with a complete and unique assortment of specialty fertilizers tailored to specific crops and soil conditions. The strengthening of Yara’s position in SQM is a sign of our long-term commitment to SQM and specialty fertilizers,” says Yara President and CEO Thorleif Enger.
The global agreement between SQM and Yara covers a number of products, manufacturing facilities and marketing networks. Since its implementation in 2002 the combined turnover in specialty fertilizer has doubled. While SQM is the sole distributor in selected markets in Latin America and the Middle East, Yara sells the complete portfolio of products in other countries around the world. In 2004 Yara sold approximately 500,000 tonnes of SQM products, which is an increase of 19% compared with 2003.