PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, today celebrates its 15th anniversary. On this very date 15 years ago the Company was officially registered.
PhosAgro CEO Andrey Guryev said: “We can be truly proud of what we have achieved in the past 15 years. The Company has shown truly impressive growth, has earned its position as a standard-bearer of the Russian chemicals industry, and has secured its spot in the global market. This success was made possible by the entire team, by every single employee.”
Since its 10-year anniversary, PhosAgro has improved its operating efficiency and expanded its production capacities, having become one of the most efficient producers of phosphate-based fertilizers in the world. Through modernisation and optimisation of business processes, the Company has increased production output by 5%-10% every year while also improving labour productivity.
PhosAgro has consistently invested in new technologies and processes that have enabled it to reduce the consumption of energy and non-renewable resources. The Company has decreased per-unit energy consumption by 40%. After commissioning its own generating capacities, which are integrated into recently-built mineral fertilizer production lines, several of PhosAgro’s plants have become capable of supplying nearly all of their power needs.
PhosAgro CEO Andrey Guryev said: “We have our eyes on the future, and continue to undertake large-scale investments into high-tech production capacities that, we believe, will force inefficient players and high-cost capacities out of the market, helping to reduce the impact on the environment.
“With the launch of our new ammonia and urea production lines next year, we will increase our marketable product output by 25% to 8.1 million tonnes, strengthening PhosAgro’s position among the top three global fertilizer producers.”
PhosAgro’s sales strategy has enabled the Company to become the leading supplier on its domestic Russian market, having increased sales to Russian farmers nearly twofold, while increasing its international reach by the same multiple, with agricultural producers in over 100 countries using PhosAgro fertilizers.
The Company has increased the number of fertilizer grades it produces from 14 to 33, while improving the flexibility of its production lines which, unlike other fertilizer producers, enable PhosAgro to quickly respond to market demand by changing its product mix.
This year PhosAgro, whose shares and GDRs trade on the Moscow Exchange and the London Stock Exchange, also celebrated five years since its listing on these stock exchanges. In May of this year the Company’s GDRs were included in the MSCI Russia index, marking the first time in two years that a new company was added to this list.
PhosAgro is a socially responsible company, and it invests significant amounts into programmes that aim to develop youth sports, support education, and improve medical services, while also promoting health lifestyles and the revival of spiritual values. The Company also implements a corporate housing programme for its employees, which has provided over 1,500 families with homes in recent years.
PhosAgro supports professional sports. In addition to supporting the Russian Olympians Support Foundation, the All-Russian Federation of Rhythmic Gymnastics, the Moscow Federation of Rhythmic Gymnastics, youth sports and investments into sporting infrastructure, PhosAgro is the sponsor of the Severyanka volleyball club (Vologda region), Proton-BAES (Saratov region), the Avtodor basketball club and the the Turbina speedway team (Saratov region). PhosAgro also supports the Russian Chess Federation, the Russian Swimming Federation, the St. Petersburg Regional Judo Federation, thus making its contribution to Russia’s international sporting victories.