Moscow - PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), a leading global vertically integrated phosphate-based fertilizer producer, has signed a contract with INCRO S.A. (Spain), one of the world’s leading engineering companies for licensed mineral fertilizer production technologies, to conduct design engineering work on a new production line at Balakovo Mineral Fertilizers in the Saratov region.
The contract involves the development of detailed engineering specifications for a new NPK/NPS/NP production line with a 450 ths tonne per year production capacity, using technology licensed from INCRO.
Management Company PhosAgro AG CEO Mikhail Rybnikov said: “This project will help PhosAgro to achieve its strategic goal of increasing internal processing of phosphate rock, while also significantly increasing our product assortment to meet domestic and international demand.”
PhosAgro is one of the largest suppliers of complex NPK fertilizers to the domestic market, providing Russian agricultural producers with the most widely used fertilizer grades. Complex NPK fertilizers provide for the optimal balance between nitrogen, phosphor and potassium nutrients, which are essential for increasing crop output.
In 2012 PhosAgro produced 1,644 ths tonnes of complex NPK fertilizers at its PhosAgro-Cherepovets site. With the launch of the new production line at Balakovo Mineral Fertilizers, PhosAgro will secure its leading position among Russian NPK producers.
Based on previous estimates, the capital expenditure for the new NPK production line at PhosAgro’s Balakovo site is expected to amount to around USD 190 million. The project is due to be implemented in 2013-2016.