by Siri-Anne dos Santos, Cash Manager, Yara International ASA
When Yara was demerged from Norsk Hydro, we originally took on Norsk Hydro’s treasury and payment systems so the new treasury function could get up and running quickly. As part of this infrastructure, we inherited a highly functional payment factory and in-house banking system, which had been built in-house at Norsk Hydro. Although the system met our functional needs, however, we recognised that a system developed in-house is very expensive to maintain and it is difficult to reflect industry developments. Furthermore, our lease for the system was only for five years, so the system had to be replaced.
In addition, while we recognised the value of a centralised treasury and payments infrastructure at Norsk Hydro, we had not determined whether this was the right business and technical model for Yara. We therefore conducted a study to determine whether Yara should maintain a centralised treasury, payments and collections factory. The outcome of this was very positively in favour of a centralised infrastructure, so we made the decision to select a new payments factory and in-house banking system.
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