The Board of Yara International ASA has approved an investment of SEK 1,747 million (USD 220 million) to sustain and increase technical ammonium nitrate (TAN) capacity in the Köping site in Sweden.

The investment includes the construction of a new nitric acid plant replacing an existing plant which is approaching the end of its operating life. The total TAN capacity after the upgrade will reach about 450 kt per annum.

"With this investment, Yara further strengthens its position as the largest independent supplier of high quality TAN globally. After the expansion, Köping will be well positioned to efficiently supply growing demand in Nordic markets as well as continuing to supply global markets," says Torgeir Kvidal, President and Chief Executive Officer of Yara International ASA.

The new plant will be based on state-of-the-art technology, improving energy efficiency and further reducing greenhouse gas emissions in the Köping plant. Construction will start in 2015, with completion expected in second half  2017.