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PhosAgro Signs Contract for Ammonium Sulphate Production Line with GEA Messo

8 December 2014
Moscow – PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, has signed a contract for the design, delivery and assembly of equipment for a new ammonium sulphate production line with a capacity of 300 ths tonnes per year at PhosAgro-Cherepovets with the German company GEA Messo P.T.*  PhosAgro subsidiary Mining and Chemical Engineering will do initial engineering and design work for the new production capacity.

This project will use the best available technologies and modern equipment, helping it to achieve high levels of energy, resource and labour efficiency, as well as environmental and industrial safety.  

GEA Messo P.T. Managing Director Reinhard Scholz said: “The ammonium sulphate production line that will be built in Cherepovets uses a crystallisation process and will be the largest individual capacity in the world.  This unique production facility will be designed with careful consideration for all environmental requirements.  It is a completely closed-cycled production process, meaning it will not produce any wastewater.”

Ammonium sulphate is an important component of NPK and NPKS fertilizers, including for niche products sold to premium markets.  PhosAgro is currently the largest consumer of ammonium sulphate in Russia.  The Company currently purchases the product from various chemical and metallurgical plants.  The new ammonium sulphate production line will utilise sulphuric acid and ammonia produced at PhosAgro-Cherepovets.

PhosAgro CEO Andrey Guryev said: “The new ammonium sulphate production line will improve our resource security by removing risks related to the supply of the chemical components that our production facilities require for manufacturing complex fertilizers, especially given our growth plans.  Our own supply of high-quality ammonium sulphate will be sufficient to cover all of our internal requirements.”

The new production facility is due to be commissioned in 2017.  Total investments, including project engineering work, delivery and assembly, are expected to amount to over RUB 2.7 billion.  PhosAgro plans to finance the project with its own funds and through borrowings.  In parallel to the construction, staff training and education courses will start.  The new facility will create 30 new jobs.

Construction of the new ammonium sulphate line is part of PhosAgro’s strategy to 2020, which includes development of the Company’s resource base and processing facilities.  Under PhosAgro’s strategy to 2020, PhosAgro-Cherepovets will gain a new 760 ths tonne per year ammonia production facility, a new 500 ths tonne per year granulated urea line and the new 300 ths tonne per year ammonium sulphate production, as well as expanded complex fertilizer capacities.  The Company plans investments of over USD 1,072 million into developing its chemical production capacities.

*GEA Messo P.T. is one of the world’s leading producers of crystallisation equipment for the chemicals sector, including the fertilizer industry, and is a developer and manufacturer of chemical equipment.