National Hydrocarbon Company, Sonatrach, and Spanish Group Villar Mir, partners since 2005 in two fertilizer production plants in Annaba and Arzew, signed two agreements on the development of their activities in Algeria, Sonatrach announced in a release.
The first agreement concerns the revision of some provisions of the partnership agreement ruling Fertial, a joint venture which 66% stake is held by Group Villar Mir and the remaining 33% stake by Asmidal, Sonatrach fully owned subsidiary.
It aims at "re-balancing the economic and operational interests of the two parties."
Fertial, which annual capacity averages one million tonne ammonia, produces in the two industrial sites, based in Annaba and Arzew.
The joint venture has gained considerable market shares in both the export and the domestic market with an initial investment of $ 170 million which has enabled it to position itself as leader in the Mediterranean basin and second in the Arab world, behind Saudi Arabia.
Moreover, the second agreement signed by Sonatrach and Villar Mir concerns the revival of El Bahia Fertilizer project, meant to produce e 1.1 million tonne ammonia per year, the same source said.
The agreement will allow the effective kick-off of El Bahia Fertlizer, ruled by a joint venture create in 2006 between Sonatrach and Fertiberia, subsidiary of Group Villar Mir.
"The parties welcomed the agreement, which will give a new impetus to their partnership in the field of fertilizers and will satisfy the demand of the domestic agricultural sector at competitive prices," the release concluded.
