URALCHEM Takes Controlling Stake in Ventamonjaks Terminal
- Business & Finance
URALCHEM, OJSC, one of the largest producers of nitrogen and phosphate fertilizers in Russia, has become a controlling shareholder in SIA Ventamonjaks. Ventamonjaks is the largest liquid ammonia transhipment terminal in the Baltic Sea. It has an annual capacity of 1 million tonnes and is located in the ice-free port of Ventspils.
URALCHEM’s subsidiary, Uralchem Freight limited, acted on behalf of URALCHEM as a party to the transaction and became the owner of 55% of the shares in the company, which has 100% shares in SIA Ventamonjaks. The transaction was carried out with the participation of ABLV bank.
Dmitry Konyaev, General Director of URALCHEM OJSC, said: “The purchase of the terminal is consistent with our strategic goal of providing logistic security to the supply of our products. For more than 15 years the enterprises of URALCHEM have been customers of the Ventamonjaks. URALCHEM is the leader in Russia in terms of manufacturing ammonia and intends to increase its production. We are keen to provide our customers around the world with flexible and the most favourable conditions for its supply. Our approach to the purchase of the terminal and to its future management will be identical to our existing project – the Riga Fertilizer Terminal.”
Andrejs Visnauskas, Chairman of the board of directors of SIA Ventamonjaks, said: “The acquisition of shares in the terminal by the manufacturer and owner of the transhipped product provides a long-term guarantee for its workload. This is an important factor for the competitiveness of the terminal, its ability to ensure income for its owners and to provide jobs and taxes for the Latvian budget. We also hope that, with the help of URALCHEM, we will be able to increase the workload of the terminal, which has significantly reduced after the global financial crisis.”
Press Release, August 21, 2014