Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, has concluded its reorganisation of JSC Apatit (Cherepovets) by incorporating JSC Metachem (Volkhov) and JSC PhosAgro-TRANS (in Cherepovets).
PhosAgro CEO Andrei Guryev said: "PhosAgro’s merger of production and logistics assets into one legal entity has now been concluded. I am confident that these organisational changes will further improve the Company's efficiency and business process management."
From 1 April 2019, all employees of JSC Metachem were transferred to the Volkhov branch of JSC Apatit. The staff of JSC PhosAgro-Trans joined the logistics department at JSC Apatit. All social obligations are implemented in full accordance with the previously approved programmes and collective bargaining agreements. There will be no significant changes in the structure of tax payments to regional and municipal budgets.
JSC Metachem (from 01.04.2019 the Volkov branch of JSC Apatit)
The enterprise is situated in the city of Volkhov (Leningrad region). It was established in December 2003 after the division of the Volkhov aluminium plant into chemical and metallurgical production units. In 2012, it became part of PhosAgro. More than RUB 5 billion has been invested in the development of the enterprise and its product portfolio has significantly increased. The enterprise is the only producer of sodium tripolyphosphate in Russia and offers a wide range of mineral fertilizers. Thanks to investments from PhosAgro, the enterprise's environmental safety has improved.
In 2019, an investment programme to develop the enterprise's production capacities was launched. The total investments will exceed RUB 23 billion, with the programme due to be completed by 2023.
JSC PhosAgro-Trans (from 01.04.2019 all functions are performed by the logistics department of JSC Apatit)
Freight-forwarding company JSC PhosAgro-Trans was founded in 2002. Its purpose was to organise rail transportation for PhosAgro enterprises, freight forwarding and cargo transhipment in the ports of St Petersburg, Murmansk, Novorossiysk, Kaliningrad and Tallinn. The company has more than 6,000 hopper cars, gondolas, boxcars and tank cars. PhosAgro-Trans initiated a major project to construct next-generation hopper cars.