DSM, Kemira to swap fertilizer operations

Abstract

Restructuring of Western Europe's troubled fertilizer industry continues apace. The latest move being contemplated entails a portfolio swap between DSM of the Netherlands and Finland's Kemira. If the plan materializes, it will mark a further step in Kemira's strengthening of its role as supplier of compound fertilizers based on nitrogen, phosphorus, and potassium. DSM, for its part, aims to concentrate on the high-nitrogen sector of the market. It will gain total ownership of an ammonia operation at Geleen, the Netherlands, in which Kemira now has a one-third share, thereby raising its captive ammonia capacity at the site to 800,000 metric tons. And by quitting the phosphate-based fertilizer business, DSM no longer would have to face the growing environmental concern over cadmium pollution (C&EN, March 14, page 8). DSM uses Moroccan phosphate rock that has a relatively high cadmium content. In contrast, rock from Kemira's own Finnish mine is extremely low in cadmium. Through acquisition of ...