Omnia Grows Short-Term Investment to Increase Long-Term Profit for Chemical Sector

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Researched by Industrial Info Resources (Sugar Land, Texas)--In 2009, Omnia Holdings Limited (JNB:OMN) (Bryanston, South Africa) made a commitment to increase capital investment for its chemical division in its home country of South Africa and abroad, to take advantage of growth opportunities from foreign income. The board knew that profits would reflect slower growth for the short-term yield, but it remained confident in its five-year plan.

During this time, Omnia acquired Highchem Industries (Nairobi, Kenya), a distributor of polymers. This broadened Omnia's footprint into Kenya, Uganda and Sudan, adding to its existing presence in Zambia, Zimbabwe, Australia and New Zealand. Omnia is also planning to open an office in China, with hopes to grow its market in Asia. All these moves are designed to put Omnia in a position to meet the increased demand that it predicts will take place in the chemical market.

Omnia's fertilizer division is moving ahead with invesment plans at the company's site in Sasolburgh, South Africa. Two units are being added to the site to increase the production of nitrogenous fertilizers. A 1,000-metric-ton-per-year nitric acid unit and an 850-metric-ton-per-year ammonium nitrate unit soon will be constructed at the existing site. Both units will utilize Uhde GmbH (Dortmund, Germany) technology in the processing of the fertilizers. Site preparation is being performed, and mechanical and electrical installation starts are planned for the first quarter of 2011. The combined investment for the unit additions is approximately $185 million. Construction of the units is expected to be complete in the fourth quarter of 2011.

Omnia began operating in 1953 as a distributor of agricultural lime. It wasn't until 14 years later, in 1967, that Omnia owned and operated its first fertilizer plant. Omnia is also involved mining and agriculture.

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