Moscow - PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), a leading global vertically integrated phosphate-based fertilizer producer, has completed the consolidation of the core assets of Metachem, which include production of phosphoric and sulphuric acids, potassium sulphate and tripolyphosphate.
PhosAgro increased its stake in Metachem from 74.76% to 100% of the enterprise.
Through a sequence of related transactions, PhosAgro sold the non-core assets of Metachem to the former minority owners of Metachem. The non-core assets included 100% of the shares of Pikalevskaya Soda and property related to cement production.
With the income from these related transactions, including the sale of non-core assets, PhosAgro’s expenditures on the full consolidation of 100% of Metachem amounted to slightly more than USD 14 million.
Currently Metachem is constructing a new, 100 kt per annum PKS/NPKS fertilizer production line, which is scheduled for launch in the beginning of next year. Total capital expenditure on this project is expected to be USD 12 million.