Tata Chem sees USD 300-350 million EBITDA from Gabon plant
Tata Chemicals expects earnings before interest, taxes, depreciation and amortization (EBITDA) of USD 300-350 million from the ammonia-urea fertilizer plant at Republic of Gabon in Africa, Managing Director R. Mukundan said in a conference call Wednesday.
April 13, 2011 / 16:35 IST
Tata Chemicals expects earnings before interest, taxes, depreciation and amortization (EBITDA) of USD 300-350 million from the ammonia-urea fertilizer plant at Republic of Gabon in Africa, Managing Director R. Mukundan said in a conference call Wednesday.
For the nine months ended December 31, Tata Chemicals had a consolidated operating profit of Rs 1047 crore.The Tata group company had said Tuesday it is buying a 25.1% stake in phase I of the fertilizer complex in Gabon for USD 290 million.The fertiliser complex will have a production capacity of 1.3 million tonne per annum (MTPA), and is being set up through a joint venture between Singaporean commodities group Olam International and the Gabon government.Tata Chemicals plans to buy a higher stake in stream 2, or second phase of the fertilizer complex.The cost (for stake in stream 2) is likely to be much lower for a much higher stake, Mukundan said.Media reports said Tata Chemicals is likely to spend USD 170 million to acquire stake in stream 2. The stream 2 of the fertilizer complex will also have a capacity of 1.3 MTPA. While work on the phase 1 has already started, a decision on execution of phase 2 will be mutually decided by the three parties in the next 24 months, Mukundan said.Brokerage Prabhudas Liladher said the plant is expected to be one of the lowest cost urea manufacturing facilities globally and strategically located near Gabon
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