Company acquires Texas ammonia facility to strengthen global supply
Yara International ASA has announced plans to acquire a major ammonia production facility in Texas City, Texas, through its U.S. subsidiary, Yara North America. The transaction is valued at approximately $1.3 billion and represents one of the company's largest recent investments in ammonia production.
The facility is expected to have an annual production capacity of 1.3 million metric tons of ammonia once operations reach full capacity. The plant is currently being commissioned and is expected to achieve stable operations by the end of 2026.
"By bringing this plant into the Yara portfolio, we are strengthening our operational resilience and diversifying our energy costs at a time when supply flexibility matters more than ever,” said Svein Tore Holsether, President and Chief Executive Officer.
He added, “This addition of world-class U.S. production capacity supports our long-term strategy of diversifying our energy exposure, capturing economies of scale, and lowering both fixed costs and capital per tonne. With a century of experience and a proven commitment to safety across our operations, sales, and distribution networks in over 60 countries, Yara will contribute to reliable supply across critical value chains, in the U.S. and beyond."
The acquisition supports Yara's long-term strategy to strengthen its global ammonia production network while reducing exposure to energy market fluctuations. By increasing its presence in the United States, Yara aims to improve supply security and enhance the efficiency of its fertilizer and industrial operations.
Under the agreement, industrial gases and utilities required for production will be supplied through a long-term arrangement with Air Products. This partnership is expected to provide reliable access to key inputs while allowing Yara to focus on optimizing plant performance.
Yara plans to use the facility's output to serve both external customers and its own fertilizer production system. The company believes the plant has the potential to become one of the most efficient and profitable ammonia production sites within its global network.
The investment also supports Yara's efforts to diversify its energy sources by increasing exposure to U.S. natural gas markets. In addition, the company sees future opportunities to support lower-carbon ammonia production as technologies and regulations continue to develop.
Despite the significant investment, Yara stated that the acquisition remains consistent with its financial strategy and capital allocation plans. The company continues to focus on maintaining a strong balance sheet while generating long-term value for shareholders.
The transaction remains subject to customary closing conditions and regulatory approvals. Once completed, Yara will focus on completing the plant's ramp-up and maximizing production efficiency to support fertilizer and industrial customers around the world.
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