A changing Hydro

U
ntil 2003, Hydro’s Agri operations
formed the historical backbone
of the company. It was where
the company got its start just over a
century ago, making fertilizer. Then it was
“demerged” from Hydro and listed on the Oslo
Stock Exchange. Today, Yara is the world’s un-
disputed leader in the field of plant nutrition.
The company’s ambitions grew after its
launch: Yara aims to be the “industry shaper”
with a 10 percent market share by 2010.
Fast facts
• Yara is the global leader in plant
nutrients, with sales to more than
120 countries
• Core business is production and
marketing of nitrogen-based
fertilizers and ammonia, the key
raw material for nitrogen fertilizers
• Employees: 6,800
• Share price at launch, NOK 41;
early 2007, around NOK 165
“Being spun off opened up a lot of new
opportunities for us. We have been care-
ful to take advantage of them and actively
communicate what we stand for and where
we are going,” says Yara’s chief personnel
officer, Anne Grethe Dalane.
“As an independent company, our area
of operation became more clear-cut. It was
easier to develop a coherent strategy and
set specific goals. We were able to create
our own identity; our corporate culture is
probably even more results-oriented today
than it was previously.”
Culture and brand building are two of the
six planks in Yara’s program to realize its am-
bition to be the “industry shaper.” The others
are profitable growth, efficient operations, a
better cost structure and innovation.
Despite all the changes the company has
gone through, Dalane believes that most
employees have not experienced any major
upheaval.
“Identity and a sense of belonging have a
very strong local dimension: 98 percent of
our employees work outside the company’s
head offices in Oslo, and 85 percent work
outside Norway. We still have a decentralized
organization, and the further away from Oslo
you get, the less people will have noticed the
change.
“It is important that we all see the real po-
tential of Yara and the business we operate.
A changing Innovation Hydro hi! 23
“Being spun off from Hydro opened up a lot of
new opportunities for Yara,” says chief personnel
officer Anne Grethe Dalane.
That is something that CEO Thorleif Enger has
always been crystal clear about – that we have
a strong desire for growth.
“Although a lot of necessary restructuring
was carried out before we were spun off, we
have continued to increase the efficiency of
our operations. This has also led to a cut in the
workforce – from around 8,000 then to fewer
than 7,000 now.
“If we go back four years, Agri (today’s Yara)
was part of a 40,000-strong Hydro workforce.
The fact that we are now a separate, smaller
– and leaner – organization has probably
played a part in how we feel about our jobs
and our role. It may actually be easier for each
individual employee to see the value of what
we do, and lines of decision have definitely
got shorter.”
Dalane adds a little wryly: “I don’t think any-
one in today’s Yara wants to be part of all the
changes that are currently going on at Hydro.
It is easier to be yourself.”
hi! > Trond Aasland
photos > PhotoDisc, Trond Aasland
>>>