Tata Chemicals (TCL) and Olam International (Olam) have signed a termination agreement whereby TCL will not proceed with its proposed 25.1% equity participation in the greenfield ammonia-urea fertilizer manufacturing project (GFC) in the Republic of Gabon, Africa. On April 11, 2011, the company participated in the project in which Olam currently holds 80% stake with the Government of the Republic of Gabon (ROG) holding the remaining 20%.
This decision was made due to a change in TCL’s investment focus away from overseas fertilizer manufacturing and Olam’s intention to move to a minority and non-consolidated position in the project. Since TCL’s intention to invest in the project was announced in 2011, Olam and TCL have worked together closely to complete the project’s Front End Engineering Design (FEED) phase. TCL will maintain its relationship with GFC going forward by providing any technical support that may be requested by Olam or GFC’s other equity partners.
Tata Chemicals, part of the Tata Group, is a leading manufacturer of chemicals, fertiliser and food additives. Tata Swach is a water purifier developed by Tata Chemicals.