Ballance Agri-Nutrients is investigating a partnership arrangement for its proposed redevelopment of the Kapuni ammonia-urea plant in Taranaki, where it produces GoClear diesel exhaust fluid (DEF).
The Kapuni plant is the only one of its kind in New Zealand which Ballance has operated for more than two decades.
It produces around 260,000 tonnes of agricultural urea each year – around one-third of New Zealand’s total needs.
The chief executive officer of the agricultural co-operative, Mark Wynne says the decision to invite partners into the project was the next step in the process including a year-long study, followed by an extensive tendering round.
“We now have a possible price for a state-of-the-art ammonia-urea plant capable of meeting the highest safety, environment and production standards,” says Wynne.
“The costs are in the hundreds of millions, and they have come in higher than expected. It makes good sense for us to be looking at inviting an appropriate partner on board who can share in the investment and add value to the wider business,” he says.
Wynne says despite the revised costings, the project was still stacking up as a sound investment.
“We are excited about the possibilities this project provides to future-proof our production capacity and improve our global manufacturing competitiveness,” says Wynne.
The co-operative will seek to engage with potential partners over the coming months before making any further decision on the project. It says it will be consulting with its shareholders over any final recommendations.
Ballance is not disclosing the tendering process prices for the project outside of partnership discussions due to commercial sensitivity.
