Norwegian fertilizer giant Yara International will acquire an ammonia production facility in Texas City for $1.3 billion, marking a major push into North American manufacturing. The deal with Gulf Coast Ammonia, owned by Lotus Infrastructure Partners and MB Energy, gives Yara control of a plant currently under construction.

The Texas facility will produce 1.3 million metric tons of ammonia annually when it reaches full capacity by late 2026. Liquid ammonia serves as a core component in fertilizer production, made by combining hydrogen and nitrogen gases. Air Products will provide the industrial gases under a long-term supply agreement, securing Yara's input costs for years ahead.

This acquisition supports Yara's broader strategy of diversifying energy exposure while achieving economies of scale. By establishing US production capacity, the company reduces reliance on imported ammonia and positions itself closer to key agricultural markets. The move reflects growing demand for nitrogen-based fertilizers in North American farming.

The transaction signals Yara's commitment to vertical integration and cost control as fertilizer prices remain volatile. Adding domestic production helps insulate margins from shipping costs and supply chain disruptions that have plagued the industry in recent years.