Yara International
Encyclopedia
Yara International ASA is a Norwegian
-based chemical company
. Its largest business area is the production of nitrogen fertilizer, however it also encompasses the production of dry ice
, nitrate
s, ammonia
, urea
and other nitrogen-based chemicals.
The company was established as Norsk Hydro
– the world’s first producer of mineral nitrogen fertilizers – in 1905 and demerged as Yara International ASA on March 25, 2004. Yara is listed on the Oslo Stock Exchange and has its headquarters in Oslo. The company has about 7,300 employees, with operations in more than 50 countries and sales to over 120.
, Kristian Birkeland
and Marcus Wallenberg. Norsk Hydro used Norway’s large hydroelectric-energy resources to produce its first product, mineral fertilizer. The company pioneered direct nitrogen fixation
, called the Birkeland-Eyde Process
. This contribution to the fertilizer market attracted global attention as the product enabled farmers to boost their yields.
Norsk Hydro was founded on advanced research. This work was driven by a need to diversify and develop new industries. Even though the production of mineral fertilizer was successful, the company expanded into other businesses, from fertilizers to oil and metals.
The company adopted an international perspective early, sending its first shipment to China in 1913. In 1969, Norsk Hydro entered its first joint venture, with authorities in Qatar. With access to a competitive source of gas and a strategic location in the Middle East, the joint venture opened up a global market for the company.
By the 1970s, the company was established in Asia, the Middle East and North America. The late 1970s to the mid-1980s was a period of rapid growth, through the acquisition of major fertilizer companies in France, Germany, Holland and the UK. At the end of the 1990s, the company was also established in Brazil and South Africa.
In 2004, Hydro Agri demerged from Norsk Hydro and became an independent company called Yara International ASA. The company was listed on the Oslo Stock Exchange on March 25, 2004.
Since then, Yara has continued to expand its global presence through investments in other countries, such as Canada, Libya, Australia and Switzerland. The company is currently the world's leading provider of mineral fertilizer, with operations in more than 50 countries spread over six continents.
Libyan Norwegian Fertiliser Company B.V., registered in the Netherlands
, is co-owned by "Libyan partners" ... with close ties to Muammar Gaddafi
and his clan" (and Yara) according to Dagens Næringsliv
. Authorities have frozen the joint venture's bank accounts, in the Netherlands.
in advance of negotiations in 2008 (that led to to an investment of 1.5 billion Norwegian kroner in a 50 percent share of Libyan Norwegian Fertiliser Company, or LIFECO, in 2009).
) formally charged the company in 2011, in relation to alleged corruption involving India.
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
-based chemical company
Chemical industry
The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials into more than 70,000 different products.-Products:...
. Its largest business area is the production of nitrogen fertilizer, however it also encompasses the production of dry ice
Dry ice
Dry ice, sometimes referred to as "Cardice" or as "card ice" , is the solid form of carbon dioxide. It is used primarily as a cooling agent. Its advantages include lower temperature than that of water ice and not leaving any residue...
, nitrate
Nitrate
The nitrate ion is a polyatomic ion with the molecular formula NO and a molecular mass of 62.0049 g/mol. It is the conjugate base of nitric acid, consisting of one central nitrogen atom surrounded by three identically-bonded oxygen atoms in a trigonal planar arrangement. The nitrate ion carries a...
s, ammonia
Ammonia
Ammonia is a compound of nitrogen and hydrogen with the formula . It is a colourless gas with a characteristic pungent odour. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers. Ammonia, either directly or...
, urea
Urea
Urea or carbamide is an organic compound with the chemical formula CO2. The molecule has two —NH2 groups joined by a carbonyl functional group....
and other nitrogen-based chemicals.
The company was established as Norsk Hydro
Norsk Hydro
Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
– the world’s first producer of mineral nitrogen fertilizers – in 1905 and demerged as Yara International ASA on March 25, 2004. Yara is listed on the Oslo Stock Exchange and has its headquarters in Oslo. The company has about 7,300 employees, with operations in more than 50 countries and sales to over 120.
History
Yara’s history began over a hundred years ago, when Norsk Hydro was founded by industrialists Sam EydeSam Eyde
Samuel Eyde was a Norwegian engineer and industrialist, the founder of Norsk Hydro and Elkem.-Biography:Sam Eyde was the son of a shipowner, and studied engineering in Berlin where he graduated in 1891. He started his career in Hamburg, working with the railways where he planned new lines, bridges...
, Kristian Birkeland
Kristian Birkeland
Kristian Olaf Birkeland was a Norwegian scientist. He is best remembered as the person who first elucidated the nature of the Aurora borealis. In order to fund his research on the aurorae, he invented the electromagnetic cannon and the Birkeland-Eyde process of fixing nitrogen from the air...
and Marcus Wallenberg. Norsk Hydro used Norway’s large hydroelectric-energy resources to produce its first product, mineral fertilizer. The company pioneered direct nitrogen fixation
Nitrogen fixation
Nitrogen fixation is the natural process, either biological or abiotic, by which nitrogen in the atmosphere is converted into ammonia . This process is essential for life because fixed nitrogen is required to biosynthesize the basic building blocks of life, e.g., nucleotides for DNA and RNA and...
, called the Birkeland-Eyde Process
Birkeland-Eyde process
The Birkeland–Eyde process was developed by Norwegian industrialist and scientist Kristian Birkeland along with his business partner Sam Eyde in 1903, based on a method used by Henry Cavendish in 1784. This process was used to fix atmospheric nitrogen which was in turn used to produce nitric acid,...
. This contribution to the fertilizer market attracted global attention as the product enabled farmers to boost their yields.
Norsk Hydro was founded on advanced research. This work was driven by a need to diversify and develop new industries. Even though the production of mineral fertilizer was successful, the company expanded into other businesses, from fertilizers to oil and metals.
The company adopted an international perspective early, sending its first shipment to China in 1913. In 1969, Norsk Hydro entered its first joint venture, with authorities in Qatar. With access to a competitive source of gas and a strategic location in the Middle East, the joint venture opened up a global market for the company.
By the 1970s, the company was established in Asia, the Middle East and North America. The late 1970s to the mid-1980s was a period of rapid growth, through the acquisition of major fertilizer companies in France, Germany, Holland and the UK. At the end of the 1990s, the company was also established in Brazil and South Africa.
In 2004, Hydro Agri demerged from Norsk Hydro and became an independent company called Yara International ASA. The company was listed on the Oslo Stock Exchange on March 25, 2004.
Since then, Yara has continued to expand its global presence through investments in other countries, such as Canada, Libya, Australia and Switzerland. The company is currently the world's leading provider of mineral fertilizer, with operations in more than 50 countries spread over six continents.
Acquisitions, joint ventures and expansions
- Thirty percent of the Russian fertilizer producer OAO Minudobreniya ("Rossosh"), was bought in February 2005.
- An ammoniaAmmoniaAmmonia is a compound of nitrogen and hydrogen with the formula . It is a colourless gas with a characteristic pungent odour. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers. Ammonia, either directly or...
plant at BurrupBurrupBurrup may refer to:* The Burrup Peninsula near Dampier, Western Australia,* Eddie Burrup, a pseudonym under which Elizabeth Durack painted in the 1970s and '80s....
, Australia, opened in April 2006. Yara presently holds a 35 percent stake and is involved in litigation with the other share-holder, Pankaj OswalPankaj OswalPankaj Oswal is an Indian Australian businessman. He was the Chairman and Managing Director of Burrup Holdings Limited. BOY is a Perth based company and one of the world's largest liquid ammonia production companies. Oswal has a fortune of over A$2 billion making him one of Australia's richest...
.
- In July 2006, Yara bought a controlling interest in the Brazilian fertilizer distribution and marketing company Fertibras.
- In September 2006, Yara bought 50 percent of the Geneva-based trading company Balderton Fertilisers SA.
- In May 2007, Yara bought 30.05 percent of Finnish fertilizer company Kemira GrowHow and successfully tendered an offer to buy the rest.
- In July 2008, Yara entered into an agreement to acquire Canadian nitrogen producer SaskFerco, completing the deal in October 2008. After this, the fertilizer plant located in Belle Plaine commenced to operate as Yara Belle Plaine Inc.
- Fifty percent of a fertiliser factory in BregaBregaBrega may refer to:*Brega , an inhabited location in Libya**Marsa Brega Airport, the airport for Brega-People:...
, is owned by Yara as a result of buying a 50 percent stake in Libyan Norwegian Fertiliser Company (LIFECO). (Co-owners of LIFECO, are National Oil Corporation of Libya (NOC) and Libyan Investment AuthorityLibyan Investment AuthorityThe Libyan Investment Authority is a government entity headquartered in Tripoli, Libya. It was established on August 28, 2006, by Decree 208 of the General People's Committee of Libya with estimated capital of $70 billion...
(LIA) — each with 25 percent shares.)
- Construction of new Urea7 factory at SluiskilSluiskilSluiskil is a town in the Dutch province of Zeeland. It is a part of the municipality of Terneuzen, and lies about 27 km southeast of Vlissingen.In 2001, the town of Sluiskil had 2366 inhabitants...
, Netherlands, started in September 2009
- In October 2009, Qafco, in which Yara has 25 percent equity interest, signed a letter of intent for construction of Qafco-6 expansion project. The project includes the construction of a urea plant with a total daily production capacity of 3,850 tons.
- In January 2010, Yara acquired the remaining 50 percent of Balderton Fertilisers.
Libyan Norwegian Fertiliser Company B.V., registered in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, is co-owned by "Libyan partners" ... with close ties to Muammar Gaddafi
Muammar Gaddafi
Muammar Muhammad Abu Minyar Gaddafi or "September 1942" 20 October 2011), commonly known as Muammar Gaddafi or Colonel Gaddafi, was the official ruler of the Libyan Arab Republic from 1969 to 1977 and then the "Brother Leader" of the Libyan Arab Jamahiriya from 1977 to 2011.He seized power in a...
and his clan" (and Yara) according to Dagens Næringsliv
Dagens Næringsliv
Dagens Næringsliv, commonly known as DN, is a Norwegian tabloid specializing in business reporting with a claimed daily circulation of 82,775 copies in 2008, making it the 8th largest newspaper in Norway. The editor in chief is Amund Djuve. Its name is Norwegian for "Today's Business".Originally...
. Authorities have frozen the joint venture's bank accounts, in the Netherlands.
Allegations of corruption related to Libya
Norwegian authorities were informed by the company in 2011, that the company might have been involved in corruptionCorruption
Corruption usually refers to spiritual or moral impurity.Corruption may also refer to:* Corruption , an American crime film* Corruption , a British horror film...
in advance of negotiations in 2008 (that led to to an investment of 1.5 billion Norwegian kroner in a 50 percent share of Libyan Norwegian Fertiliser Company, or LIFECO, in 2009).
Timeline
- That Norsk HydroNorsk HydroNorsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
(Yara's previous name) had been involved in possible corruption in the early 2000's, was released (by StatoilHydroStatoilHydroStatoil ASA, trading as Statoil and formerly known as StatoilHydro, is a Norwegian energy company, formed by the 2007 merger of Statoil with the oil and gas division of Norsk Hydro. The Government of Norway is the largest shareholder in Statoil with 67% of the shares...
) to the press (on the same day that StatoilHydro was formed), October 01, 2007. A payment of 60 million Norwegian kroner to a Libyan pilot's company, Vexol, in South AfricaSouth AfricaThe Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, during the (previous) international boycott of Libya, was discovered by Statoil during a due diligenceDue diligence"Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations...
, and it resulted in the resignation of StatoilHydro's head, E.F.ReitenEivind ReitenEivind Kristofer Reiten is a Norwegian economist, corporate officer and politician for the Centre Party. He was a Minister of Fisheries and Minister of Petroleum and Energy during the 1980s, before entering a career in business. Reiten served as the Director General of Norsk Hydro between 2001...
, on October 4, 2007. (The pilot, was an agent belonging to a Libyan intelligence agency, according to Dagens NæringslivDagens NæringslivDagens Næringsliv, commonly known as DN, is a Norwegian tabloid specializing in business reporting with a claimed daily circulation of 82,775 copies in 2008, making it the 8th largest newspaper in Norway. The editor in chief is Amund Djuve. Its name is Norwegian for "Today's Business".Originally...
.) - T. EngerThorleif EngerThorleif Enger is a Norwegian businessperson and Chief Executive Officer of Yara International.Enger was educated as a structural engineer at the University of Colorado, United States, where he earned Bachelor's, Master's and Doctorate degrees. He worked for Royal Dutch Shell until 1973, after...
was informed by T. Holba about "possible corruption"(mulig korrupsjon)in 2008 (according to Dagens Næringsliv in 2011). - J.O. Haslestad was informed by T. Holba about "possible corruption"(mulig korrupsjon)in autumn of 2008 (according to Dagens Næringsliv in 2011).
- A statement (byYara) about their becoming aware in 2008 of a case of corruption, was released to the press on April 13, 2011. ( An e-mail with 17 questions was sent by Dagens Næringsliv (to Yara), "one and half week in advance".)
Corruption charges related to India
A prosecuting authority (ØkokrimØkokrim
The National Authority for Investigation and Prosecution of Economic and Environmental Crime is Norway's central unit for fighting economic and environmental crimes. The unit, created in 1989, has its main office in Oslo....
) formally charged the company in 2011, in relation to alleged corruption involving India.