Yara, BASF Weigh New U.S. Investment
Yara International ASA from Norway working as fertilizer producer and German chemical company BASF SE decide to invest a world-scare ammonia plants in the U.S.
Currently, the price for ammonia in America is exactly the same as it is in Europe. Meanwhile, he cost is significantly lower. The gap between profits of the two counties attracts this investment. Normally, the U.S. tends to attract more value-added products joining the domestic markets instead of producing the raw materials. Therefore, it is a really good opportunity for the States.
As we know, the unemployment of the U.S. has stayed upper than 7% for one year, which is the core issue needs to be solved. In order to let more people get jobs, the government needs to create more work for unskilled labors. The ammonia industry is exactly this kind of work, which also need large amount of labors. As a result, I believe this investment will lead to a win-win mode. Yara and BASF can profit more than they did in Europe, whereas the U.S. will get more jobs for people here.