July 30, 2013
EuroChem announced plans to create a joint venture with Migao Corporation, a China-based specialty potash fertiliser producer, in Yunnan, Southern China.
It is expected that the new joint venture will produce up to 60,000 tonnes of potassium nitrate and up to 200,000 tonnes of chloride-free nitrogen, phosphorus and potassium (NPK) fertilisers per annum. EuroChem and Migao Corporation plan to begin the construction of a plant in 2013 and launch production in 2014.
Dmitry Strezhnev, CEO of EuroChem, said "EuroChem is delighted to announce a new joint venture project in China, the largest consumer of fertilisers in the world and a region of strategic importance for us. We already sell over 200,000 tonnes of specialty NPK fertilisers in the Chinese market, and the new joint venture is a next logical step as we continue to expand our presence in the region and aim to increase the share of specialty fertilisers in our product mix."
Migao Corp is a specialty fertiliser producer based in China. It produces and sells specialty potassium (potassium nitrate and potassium sulphate) and compound fertilisers along with its core products. It operates eight production sites in China and produces 620,000 tonnes of fertiliser annually.
"With its focus on specialty potash fertilisers and track record of consistent and reliable supplies of high quality products, Migao Corporation is an ideal partner for EuroChem," Strezhnev added.
Liu Guocai, CEO of Migao Corp., said, "Migao Corporation looks forward to working together with EuroChem as we see growing demand for specialty products in the Chinese agricultural market. I am confident that our customers will benefit from the winning combination of our specialty potash focus and experience in the Chinese market and EuroChem's strong global position and expertise in the nitrogen and phosphate segments, and potash in future."