The board and management of Cinis Fertilizer have decided to remove current target of reaching the production rate of 100,000 tons of potassium sulfate by the end of the year. The decision is made after the assessment that planned improvement measures will require more time and capital than previously estimated. The board has also initiated a strategic review of the company's operations to investigate the possibilities of securing operations at the company's production facility in Örnsköldsvik. The scope also encompasses the evaluation of financing projects on other locations that incorporate the processing of sodium chloride into sodium hydroxide, an important input in the production of battery materials. The review includes financing, collaborations and potential divestments.
In September 2025, Cinis Fertilizer produced approximately 5.0 thousand tons of water-soluble potassium at its facility in Örnsköldsvik, Sweden. The volume is 10 percent less than in the month of August. During September, some of the planned improvement measures were implemented in production in parallel with the continued evaluation of how to increase production output. The company estimates that without additional investments, production will not reach the previously announced annual rate of 100,000 tons.
As a result of the above, the company is initiating a strategic review with a focus on capital raising to secure financing of business operations and required investments to reach the planned production output in the longer term.
"Cinis Fertilizer has an underlying viable business, and we have overcome several obstacles, including failed deliveries of residual flows and deficiencies in delivered equipment, but with lower revenues than planned. In recent months, we have observed ongoing price pressure in the market and been working on multiple counter measures, beyond improved production efficiency, to strengthen our profitability," said Jakob Liedberg, CEO and founder of Cinis Fertilizer AB. "We have ongoing discussions with several industrial partners for the supply of sodium sulfate to potential future production facilities. The players include leading battery manufacturers, chemical industries, and pulp mills in Europe, North America, Asia, and Australia."
Cinis Fertilizer expects to provide an update on the strategic review at the latest by the end of 2025.
__________________
For more information, please contact:
Anders Antonsson, Head of IR and Communications
anders@cinis-fertilizer.com, +46 709 994 970
Jakob Liedberg, CEO
jakob@cinis-fertilizer.com, +46 768 58 12 86
This information is such information that Cinis Fertilizer is obliged to make public pursuant to the EU's Market Abuse Regulation. This report has been prepared with a Swedish and an English version. In the event of any discrepancies between the two, the Swedish version applies. This information was published, through the agency of the contact persons above, on October 9, 2025, at 10:10 p.m. CEST.
About Cinis Fertilizer
Cinis Fertilizer is a Swedish greentech company that produces an environmentally friendly mineral fertilizer, potassium sulfate (SOP), by recycling residual streams from the manufacture of batteries and battery materials, as well as from the pulp and other industries. The patented technology uses half the energy of current production methods and results in a mineral fertilizer with a low carbon footprint. A unique and circular contribution that enables sustainable agriculture. Cinis Fertilizer is listed on First North Growth Market (CINIS). FNCA Sweden AB is the company's Certified Adviser. For more information, visit www.cinis-fertilizer.com.
