Borealis Strikes a Deal with AGROFERT, Sells Nitrogen Business
- 11-Jul-2023 1:01 PM
- Journalist: Shiba Teramoto
Vienna, Austria: Borealis AG's Nitrogen business, which includes fertilizer, melamine, and technical Nitrogen products, was acquired by AGROFERT in a transaction valued at EUR 810 million on July 5, 2023. AGROFERT is a Czech-based conglomerate with operations across multiple industries, including chemicals, agriculture, and food production. AGROFERT, which includes over 200 companies and has approximately 31 thousand employees, reported a consolidated turnover of EUR 10 billion in 2022. The company is also a top European Nitrogen fertilizer producer, with manufacturing facilities located in Germany, the Czech Republic, and Slovakia.
The acquisition of Borealis' production assets in Austria, Germany, and France, along with their robust sales and distribution network, serves to expand AGROFERT's current offerings in the European fertilizers and technical Nitrogen markets. This business combination also allows AGROFERT to incorporate melamine into its existing portfolio, further enhancing its product range.
According to Borealis CEO, Thomas Gangl, Agrofert's acquisition of their Nitrogen business is beneficial for the security of supply in Austria and Europe, as well as the impacted employees. This transaction will create a strong European company that can ensure a stable supply of fertilizers, which is crucial to produce crops and food products in the region. Meanwhile, Borealis will concentrate on its core activities of developing innovative and sustainable solutions in Polyolefins and base chemicals while transitioning towards a circular economy.
AGROFERT group considers fertilizer production as a crucial segment and is confident about its future in Europe. The focus now is to integrate Borealis' Nitrogen business into AGROFERT, which will increase the production capacity by almost double and expand into new markets such as France, Benelux countries, Bulgaria, and Serbia.
As a strategic investor, our primary objective is to enhance and modernize the existing operations through sustainable investments. We have been successfully carrying out these practices in countries such as Czech Republic, Germany, and Slovakia for several years. Commitment is to provide high-quality fertilizers to farmers in the regions where we operate while being mindful of our impact on the environment and the goals of decarbonization. We highly value being a considerate neighbor and maintaining cordial relationships with the communities where we work. Petr Cingr, Vice Chairman of the Board of Directors at AGROFERT responsible for Fertilizers, Fuels, Oils, and Renewables, believes that our approach will be well-received in new areas where company can expand our business.
Borealis has made a name for itself by delivering innovative solutions. The company is committed to providing its customers and partners with exceptional value by continuously exploring new approaches, technologies, and products that cater to various key industries. With a global presence, Borealis has become a trusted and renowned brand.