Yara International ASA has announced that its U.S. subsidiary, Yara North America Inc., has agreed to acquire Gulf Coast Ammonia's ammonia production facility in Texas City, Texas, from GCA Holdings LLC for $1.3 billion.

The acquisition adds an ammonia plant with an expected nameplate production capacity of 1.3 million metric tons per year to Yara's manufacturing portfolio. The facility is currently being commissioned and is expected to reach stable operations by the end of 2026, with production targeted above its nameplate capacity.

According to Yara, the acquisition supports its strategy to diversify energy exposure, strengthen the competitiveness of its global ammonia production network, and improve supply flexibility. The company plans to use its ammonia distribution platform to supply both external customers and its own fertilizer production operations.

The transaction includes the ammonia synthesis loop, ammonia storage, and exclusive use of loading infrastructure. Under a long-term agreement, Air Products will continue supplying hydrogen, nitrogen, and other utilities required to operate the facility.

Yara said the investment increases its exposure to United States natural gas pricing through the Henry Hub market while supporting long-term operational efficiency. The company also expects to apply its ammonia production expertise to improve plant reliability and performance as commissioning continues.

In addition to expanding production capacity, Yara said the Texas City facility could provide future opportunities to produce lower-carbon ammonia, subject to regulatory developments and financial viability.

The acquisition increases Yara's planned 2026 capital expenditures to approximately $2.5 billion, while remaining within the ammonia investment framework outlined during its January 2026 Capital Markets Day. The company said it will continue to prioritize capital discipline while focusing on commissioning the Texas City facility and meeting previously announced earnings improvement targets.

Completion of the transaction remains subject to customary closing conditions, including regulatory approvals.