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OJSC PhosAgro (PHOR)
PhosAgro Starts Implementation of new Fertilizer Production and Energy Plant
Project at Metachem
26-March-2019 / 11:30 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer / publisher is solely responsible for the content of this
announcement.
For Immediate Release 26 March 2019
PhosAgro Starts Implementation of new Fertilizer Production and Energy Plant
Project at Metachem
Volkhov, Leningrad region - PhosAgro (Moscow Exchange, LSE: PHOR), one of
the world's leading vertically integrated phosphate-based fertilizer
producers has launched a project to build a new, modern phosphate-based
fertilizer production facility and energy plant at its Metachem production
site.
Alexander Drozdenko, Governor of the Leningrad region, Viktor Evtukhov,
State Secretary and Deputy Minister of Industry and Trade for Russia, and
Andrey Guryev, CEO of PhosAgro, took part in the presentation of
construction plans for the production and energy complex and the launch
ceremony.
Total investments in the project, which PhosAgro will finance with own and
borrowed funds, is estimated at RUB 23 billion. The project is due to be
completed by 2023.
The project includes the construction of a sulphuric acid production unit
with a capacity of 800 ths tonnes per year, a fertilizer production line
(including for water-soluble DAP), liquid ammonia storage, a finished
product storage warehouse, a 25 MW heat energy generation unit and an
overhaul of the extraction phosphoric acid production unit, which will
increase output capacity to 500 ths tonnes per year.
PhosAgro CEO Andrei Guryev said: "this project is one of the key elements of
PhosAgro's strategy to 2025. In essence, this is an entire new factory that
will increase PhosAgro's total phosphate rock processing capacity by 1
million tonnes per year (currently Metachem processes 300 thousand tonnes)
as well as increasing the production of phosphate-based fertilizers that
achieve high margins due to Metachem's logistical advantages.
"For PhosAgro as a whole, fertilizer production growth will be more than 7%,
while phosphate-based fertilizer output will increase by almost 10%, rising
by 630 ths tonnes compared to 2018. Metachem's output of commercial products
such as fertilizers, as well as phosphoric and sulfuric acid will increase
by 5 times, creating more than 200 new jobs."
At nameplate capacity, Metachem's mineral fertilizer production will exceed
840 thousand tonnes per year. This will include the production of MAP, NPK
and water-soluble fertilizers used in high-tech agricultural plants for drip
irrigation, hydroponics and greenhouse production.
The investment project will utilise best available techniques, as well as
solutions from leading Russian and global companies and institutions,
including the Y. V. Samoilov Research Institute for Fertilizers and
Insectofungicides (NIUIF), which is the only of its kind in Russia and one
of the leading agrochemical R&D institutes in Europe. Construction will be
carried out by Russian contractors.
The new production facilities will fully comply with the strictest Russian
and European environmental legislation. After Metachem became part of
PhosAgro in 2012, its environmental safety has gradually increased and its
impact on the environment has decreased. Since July 2018, a closed water
circulation system has been in successful operation, collecting and
purifying all industrial storm water, which is then used in production. The
next step is to build a modern chemical water-treatment system. As part of
the investment project, there will be a transition to the use of
environmentally friendly raw materials such as liquid ammonia.
Integration of the fertilizer production facility with a 25 MW power plant,
which utilises high-tech water vapor generation, will significantly reduce
the specific energy consumption per tonne of product. This will improve the
energy efficiency, resource conservation, environmental impact and
productivity of PhosAgro's Volkhov production site.
In addition to the increased production of fertilizers for PhosAgro's
priority Russian and export markets, increased tax payments will provide the
regional budget with additional funding for the development of the region's
infrastructure and related industries.
State Secretary and Deputy Minister of Industry and Trade for Russia Victor
Evtukhov said: "the new investment project is fully consistent with the
long-term development strategy for the chemical and petrochemical industry
in Russia, to modernise existing production facilities and build ones using
best available techniques. This project aims to strengthen food security in
Russia and increase the competitiveness of domestic fertilizer producers in
export markets with high value-added products."
Leningrad region Governor Alexander Drozdenko said: "PhosAgro is one of the
region's strategic partners, and its decision to implement another
investment project in the Volkhovskiy district indicates that the Regional
Government has created conditions that are attractive to investors.
"For Volkhov, PhosAgro is becoming a key employer and taxpayer, creating new
high-tech jobs. At the same time, the successful experience of the Company
in the Leningrad region is a signal to our potential partners that it is no
coincidence that we lead the investment rating in Russia and are ready to
work with world-class companies."
PhosAgro CEO Andrey Guryev thanked the Russian Ministry of Industry and
Trade for their support in the development of competitive high-tech
industries, and thanked the Governor of the Leningrad region for
strengthening the region's favourable investment climate, supporting
projects to improve the competitive advantages of Russian companies in
export markets and ensuring national food security.
For further information please contact:
PJSC PhosAgro
Alexander Seleznev, Head of Investor Relations Department
+7 495 232 9689 ext 2187
ir@phosagro.ru
Timur Belov, Press Officer
+7 495 232 9689
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134
Dmitriy Zhadan
zhadan@em-comms.com
+7 916 770-89-09
About the Company
PhosAgro is one of the world's leading vertically integrated phosphate-based
fertilizer producers in terms of production volumes of phosphate-based
fertilizers and high-grade phosphate rock with a P2O5 content of 39% and
higher.
The Company is the largest phosphate-based fertilizer producer in Europe (by
total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of
high-grade phosphate rock with a P2O5 content of 39%, a top-three producer
of MAP/DAP globally, one of the leading producers of feed phosphates (MCP)
in Europe, and the only producer in Russia, and Russia's only producer of
nepheline concentrate (according to the RAFP).
PhosAgro's main products include phosphate rock, 39 grades of fertilizers,
feed phosphates, ammonia, and sodium tripolyphosphate, which are used by
customers in 100 countries spanning all of the world's inhabited continents.
The Company's priority markets outside of Russia and the CIS are Latin
America, Europe and Asia.
PhosAgro's shares are traded on the Moscow Exchange, and Global Depositary
Receipts (GDRs) for shares trade on the London Stock Exchange (under the
ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in
the MSCI Russia and MSCI Emerging Markets indexes.
More information about PhosAgro can be found on the website: www.phosagro.ru
[1].
ISIN: US71922G2093
Category Code: MSCM
TIDM: PHOR
LEI Code: 635400F8A3KGJIIBIK95
Sequence No.: 7943
EQS News ID: 791595
End of Announcement EQS News Service
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(END) Dow Jones Newswires
March 26, 2019 06:30 ET (10:30 GMT)
