Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces that its Board of Directors has approved the Company’s updated strategy through 2020 and its key focus areas for development in 2017.
In his remarks before the Board of Directors, PhosAgro CEO and member of the Board of Directors Andrey Guryev said, “the Company’s strategic development goals in the coming years will remain production capacity growth and increased sales through expanded presence in priority markets of Russia/CIS, Europe and Latin America, as well as other countries with favourable pricing.
“Traditional focus areas supporting the Company's organic growth include projects to increase PhosAgro's feedstock self-sufficiency, deeper processing of mineral raw materials, flexible production and sales, as well as continued efforts to reduce costs, optimise business processes and decrease per-unit consumption of natural gas at our plants.
“In the coming year, one of our key objectives will be to complete and commission a new high-tech 760 ths tonne/year ammonia production facility and a 500 ths tonne/year granulated urea line. We plan to commission these units in the third quarter of 2017.
“PhosAgro's plans through 2020 focus on developing the Group's mineral base and expansion of beneficiation capacities at Apatit, modernising sulphuric and wet-process phosphoric acid production facilities and building an ammonia pipeline at Balakovo. PhosAgro plans to further expand its product offering, while at the same time increasing sales through its own distribution network instead of using third-party traders.
“In addition, PhosAgro Group will continue to continue to fulfil its obligations with respect to social projects and the investment community.
“Executing our updated 2020 strategy will enable PhosAgro to retain its leading position both on the Russian market and as a top-three low cost phosphate fertilizer producer globally.”
At today’s meeting the Board approved the Company’s 2017 budget, as well as several related-party transactions. The Board has proposed for the EGM on 16 January 2017 to approve updates to the Company’s Charter as it relates to new standards in the federal law on joint-stock companies governing large and related-party transactions, which come into effect on 1 January 2017.