Orica and Yara Launches Ammonium Nitrate Plant in Western Australia
Australia: Orica Limited, an Australia
based mining services company and Yara International ASA, a Norway based
leading chemical products and environmental solutions firm together launched
world’s first Technical Ammonia Nitrate (TAN) manufacturing plant in Pilbara region
of Western Australia. The newly opened joint venture facility would have
Ammonium Nitrate annual production capacity of 330,000 tons. The plant would be
fully operational by the end of 2016 with the employment of 70 workers. Yara
International ASA would be responsible for operations of plant while Orica
limited will be managing the sales and distribution of Ammonium Nitrate. The plant is
situated in proximity to Yara Pilbara fertilizers ammonia plant which is
exporting 800,000 tons of ammonia annually worldwide which would eventually
eliminate the need for transportation, thus lowering the manufacturing cost.
The Orica and Yara joint venture plant is the first of its type in terms of
completely modularized construction and latest technology for reduced
greenhouse gas emission.
TechSci Research depicts that
the strategic decision of the companies to unveil plant in one of the powerful
mining region would improve Orica’s customer relationships in the local region
and would strengthen Yara’s position in the Asia-pacific Market. Moreover, the
latest technology employed in the plant also meets the sustainability standards
of production which would augment the demand of fertilizers from Ammonium
nitrate.
According to upcoming report by TechSci
Research, “Global
Nitric Acid Market Forecast & Opportunities, 2021”, the Global Nitric Acid Market is projected to
grow at the CAGR of about 10% during 2015-2022 and it estimated to reach
approximately US$15 billion by 2022. Demand for crops and vegetables has risen
remarkably in recent years, as a consequence of various macroeconomic factors
such as high population growth. Increasing demand for food produce is promoting
the adoption of more and better fertilizers by the farmers to meet the need and
take the explore the rising opportunities. The ammonium nitrate based
fertilizers are extensively preferred by the farmers, thus creating demand for
the nitric acid.