By Johnson Eyiangho
Abuja – The Abraaj Group, a leading investor operating in global growth markets, Thursday announced that it has acquired a minority stake in Indorama Fertilisers B.V. (Indorama Fertilisers).
The organisation said in a statement signed by Mitali Atal, Director, Communications, that it acquired the minority stake in Indorama Fertilisers, the largest urea fertiliser manufacturer in Sub-Saharan Africa, through its funds.
The stake was purchased from Indorama Holdings B.V. Netherlands, a wholly owned subsidiary of Indorama Corporation (Indorama), one of the world’s fastest growing petrochemical companies with operations in Asia, Africa, Europe and North America.
Indorama Fertiliser operates a world-class, 1.4 million metric tonnes per annum urea manufacturing facility based in Port Harcourt, Nigeria.
Indorama Fertilisers will establish Nigeria’s reputation as a key producer and exporter of fertiliser, channelling foreign exchange into the country, while also enabling Nigeria to meet the significant requirements of the domestic fertiliser market.
The plant has been developed to global environmental, social and construction standards.
It plays a key role in supporting the agricultural sector in Nigeria by providing a reliable supply of fertilisers for local farmers, thereby enabling import substitution and supporting the diversification needs of the Nigerian economy.
Indorama Fertilisers is also advantageously located to serve neighbouring West African countries and key Western hemisphere markets, including North America, South America and Europe.
The fertiliser industry is expected to experience long-term demand growth as increases in populations and incomes drive demand for food.
Urea is the most widely used fertiliser globally and continues to grow in market share due to its high nutrient content and ease of handling and storage.
Abraaj, which has been investing in Africa for the past two decades, will use its expertise and networks to support Indorama Fertiliser’s market penetration and future expansion plans, as well as help ensure best-in-class corporate governance.
Commenting on the investment, Arif Naqvi, Founder and Group Chief Executive, The Abraaj Group, said: “This is a landmark transaction for Abraaj in Sub-Saharan Africa.
“We are privileged to be partnering with Indorama Corporation to create a global fertiliser leader in Africa.
“Since establishment, Indorama Fertilisers has led the local market in an industry characterised by high levels of demand and insufficient supply of quality fertiliser in the region.
“Having successfully invested in the fertiliser business in North Africa, we look forward to leveraging that know-how and working with the management team in developing the company’s route-to-market infrastructure, build its network and support its capacity expansion and product diversification plans in the region.” (