Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces that its Board of Directors held a meeting today, at which it approved the priority areas of focus for the Company in 2016.
PhosAgro’s top priority for the year ahead is to continue implementation of large-scale investment projects aimed at building new production capacities and modernising existing ones, according the CEO Andrey Guryev.
Investment projects include construction of a new, high-tech ammonia production facility with an annual capacity of 760 ths tonnes, a new 500 ths tonne/year granulated urea line, as well as the overhaul of existing urea and phosphate-based fertilizer capacities at PhosAgro-Cherepovets – all of which are due to be completed in 2017.
In addition, the Company will focus on developing its upstream capacities at Apatit. This includes increases to mining capacities at the Kirovskiy and Rasumchorrskiy mines, as well as completion of the modernisation of ANOF-3, which will increase phosphate rock production capacity and add nepheline concentrate production capacity. These projects are due to be completed by 2017.
The Board of Directors also tasked management with drafting a strategy for the development of PhosAgro’s production assets through the year 2025. This document will serve as a continuation of the existing strategy to 2020 that the Company is already implementing.
PhosAgro CEO Andrey Guryev said: “This year we will continue to focus on strengthening our competitive advantages and securing the Company’s leading positions in the fertilizer market, which will undoubtedly help ensure the reliable supply of high-quality fertilizers to customers, and create shareholder value.
“Modernisations and production process improvements in recent years have already produced impressive results. In 2015 alone, PhosAgro managed to increase its fertilizer production capacity by 630 ths tonnes to 7 million tonnes, and we expect to be able grow fertilizer production by another 5% going forward.
“We have increased sales volumes to premium markets, while in parallel strengthening our position as the top fertilizer supplier to Russian farmers. Over the past three years our domestic sales have grown by more than one third, to 1.63 million tonnes of fertilizers and feed phosphates. We have increased quality and range of fertilizers we sell, and we have also expanded the selection of services we offer regarding proper application of mineral fertilizers, their storage and delivery to end customers.”
At its meeting today the Board of Directors also approved lists of candidates for election to the Board of Directors and the Review Committee by the Annual General Meeting of Shareholders. All sitting members of the Board of Directors are included as candidates. The Board also approved several related party transactions.