The Kemira Emirates Fertiliser Company (Kefco) has commissioned a new Dh50 million ($13 million) urea phosphate plant at the Jebel Ali Free Zone. The annual capacity of the facility is 30,000 tonnes, according to a report in the Gulf News.

Kefco is a three-way joint venture comprising Emirates Investment and Development (EID), which holds 50 per cent, Finland's Kemira Agro Oy (30 per cent) and Jebel Ali-based Union Kemira (20 per cent). The promoters expect to get returns within five years as urea phosphate is a speciality product and widely used in countries where the soil and water content are alkaline, said Taisto Koivumaki, vice-president for development agriculture at Kemira Agro, part of the Kemira Group.

"The target markets for our production are southern Europe, North Africa, the Middle and Far East. We have also made provisions for future capacity upgrades at this facility," he said. Kefco's product, branded Magnum P44, will be marketed through dealers or to farmers directly.

This is Kemira's second venture in Jebel Ali. In 1990 it took an equal share with Union Agriculture in Union Kemira, which produces water-soluble and acidic fertilisers and has an annual capacity of 15,000 tonnes.

The Dubai government has a 30 per cent stake in EID, formerly Emirates Food. The raw materials - phosphoric acid and urea - are being obtained from Jordan and Qatar respectively.

Kemira is also set to commission its potassium nitrate plant in Aqaba by September 2002. Investment in the plant, with an annual capacity of 150,000 tonnes, will be $106 million. The raw material, potassium chlorate, will be sourced domestically.