Terra and Kemira announce joint fertiliser venture

Two of the UK’s largest fertiliser producers, Terra Industries and Kemira GrowHow, have announced plans to join their UK operations.

The proposed venture is designed to secure a sustainable base for manufacturing fertiliser and associated process chemicals.

Both Terra and Kemira produce ammonium nitrate, the main nitrogen fertiliser consumed in the UK.

The companies said the proposed joint venture, subject to clearance from the Competition Commission, would enhance their ability to compete in the fertiliser market.

Mike Bennett, Terra Industries’ chief executive, said UK operators are facing growing competition from low-cost producing countries.

“In this environment, the joint venture will position our combined UK fertiliser and process chemicals operations to achieve long-term stability,” he added.

Terra and Kemira will submit their plans to the Office of Fair Trade by the end of the month.