Tata Chemicals pulls out of Gabon fertiliser project in Africa

Tata Chemicals Limited has decided not to proceed with its proposed 25.1% equity participation in a greenfield ammonia-urea fertiliser manufacturing project (GFC) in the Republic of Gabon, Africa. In April 2011, Tata Chemicals had announced its participation in the project in which Olam International Limited currently holds 80% stake with the Government of Republic of Gabon (ROG) holding the remaining 20%.
 
The decision was made due to a change in Tata Chemicals’ investment focus away from overseas fertiliser manufacturing and Olam’s intention to move to a minority and non-consolidated position in the project.
 
Since Tata Chemicals’ intention to invest in the project was announced in 2011, Olam and Tata Chemicals have worked together closely to complete the project's Front End Engineering Design phase. Tata Chemicals will maintain its relationship with GFC going forward by providing any technical support that may be requested by Olam or GFC’s other equity partners.
 
“We will continue to pursue the strategy of bringing world class products and services to the Indian farmers, with continuing investments in innovation and partnerships focused on the home market,” said P K Ghose, Executive Director and CFO, Tata Chemicals, in a press release.
 
A Shekhar, Executive Director of Finance and Business Development, Olam, commented, “As announced previously, Olam is continuing its discussions with other industry participants who have expressed their desire to partner with us in the project. This is in line with our intention to bring down our final equity stake to below 50%. Our belief in the project’s strategic and financial value to the Group still remains intact.”