SHANGHAI, CHINA
Mea Fertilizer Ltd, the largest private fertiliser firm in Kenya, has entered into talks with two Chinese companies for the construction of a fertiliser plant in Kenya and a partnership to purchase and import the farm input. Mea Ltd management met their counterparts from China National Chemical Engineering Company (CNCEC) and SINOCHEM, the leading fertilizer trading company in China, and explored possibilities of a partnership in establishing a nitrogenous fertilizer factory in Kenya and a separate deal on the importation of fertilizers.
Mea Ltd Executive Director Titus Gitau said the deal would transform the fertilizer industry in Kenya, adding that the talks were “the beginning of a win-win chapter for the parties involved.” This comes as Mea gears up to break ground later this year for an NPK granulation plant expected to be operational by mid next year. He said Mea would soon sign a MoU to build the nitrate plant with CNCEC after the completion of the NPK granulation 2014. “They are very keen to work with us,” he said.
The Mea team was in China as part of the team of local investors who accompanied President Uhuru Kenyatta on his state visit there. Although Mr Gitau could not reveal the financial details of the discussions and timelines, he said Mea has negotiated deals worth millions of shillings in improved technology, technical knowhow exchange and fertilizer plant design to boost its capacity and market reach.
The discussions with CNCEC General Manager or International Region Mr. Li GenXing and Commercial Manager Mr. Zhang Zhgengyang centered on future cooperation in design and construction of the nitrogenous plant given their vast global experience in urea production from natural gas and coal. “Having started off with a fertilizer blending plant,” he said, “the discussions with CNCEC represent a logical progression of Mea’s ambitious growth plans given that we are set to break ground later this year for our NPK granulation plant.”
When fully operational, Mea Ltd’s new granulation plant will increase its bulk blending fertilizer production capacity by 100,000mt to 400,000mt. SINOCHEM is a $73 billion state owned fertilizer trader and distributor with a 17 million tonne production capacity. Mea sealed a deal with the company for the purchase of two tranches of NP and sulfate ammonia from Sino Shandong plant later in the year. Mea is also targeting deals in DAP.
The meeting was also attended by Mea Ltd Managing Director Mr. Eustace Muriuki and SINOCHEM Deputy General Manager Mr. Lu Fanbin. They agreed that Mea will also source raw materials from SINOCHEM once the new 100,000mt granulation plant comes on stream.
