PhosAgro (Moscow), a leading producer of phosphate-based fertilizers, in 2017, two years ahead of schedule, completed a five-year investment program, which raised production capacity from 5.9 million metric tons/year (MMt/y) to 9 MMt/y last year. In 2019, production is expected to reach 9.4–9.5 MMt. PhosAgro was the subject of an initial public offering (IPO) in 2011, and today it is listed on the Moscow and London stock exchanges with a 26% free float.
At its Capital Markets Day in London on Wednesday, PhosAgro’s top executives announced the next five-year program to 2025, which aims to further expand its production, with focus on key inputs such as sulfuric and nitric acids, as well as ammonium sulfate. In his presentation, Andrey Guryev, CEO, said that by 2025, the company plans to invest around $3 billion in growth and modernization projects, which are expected to boost EBITDA by $450 million, increase free cash flow, and further expand PhosAgro’s self-sufficiency in raw materials.
Under the new program, PhosAgro aims to increase production of fertilizers and feed phosphates by approximately 25% to 11.7 MMt/y by 2025. Production of phosphate rock will rise from 10.5 MMt/y in 2019 to 11.1 MMt/y, of which 8.8 MMt/y will be for internal consumption. PhosAgro owns phosphate rock deposits on the Kola peninsula with the world’s highest nutrient content. Guryev pointed out that the company is a cost leader in the industry, driven by vertical integration. It is 100% self-sufficient in phosphate rock and 90% self-sufficient in ammonia and sulfuric acid.
Sergey Pronin, deputy CEO/sales and marketing, said PhosAgro plans to raise fertilizer sales in its priority domestic market from 2.6 MMt this year to 3.7 MMt/y by 2025, including third-party products. Sales to European markets should rise to 3.1 MMt/y, up from 2.0 MMt/y in 2018, and to North and South America to 3.5 MMt/y, up from 3.1 MMt/y.
PhosAgro says that global demand for phosphate fertilizers is growing faster than supply. It expects a market deficit of up to 2 MMt/y by 2025, following the closure of about 5 MMt/y of capacity in China, the US, and Mexico. Global demand for phosphate fertilizers is expected to rise from 172.5 MMt/y in 2018 to 190.0 MMt/y in 2025, including 6.2 MMt/y of increased demand in PhosAgro’s target markets. Capacity is expected to grow by 15.5 MMt/y through 2025, compared with the 17.5 MMt/y growth in demand.
According to Fertecon (London), the Agribusiness Intelligence unit of IHS Markit, PhosAgro is Europe’s largest producer of phosphate fertilizers and the world’s largest producer of high-grade phosphate rock. It is also the world’s largest producer of monoammonium and diammonium phosphate outside China and is Russia’s only producer of feed monocalcium phosphate and nepheline concentrate. At the London presentation, PhosAgro provided analysts and investors with detailed plans for its main production sites.
A longer version of the article will appear in the Chemical Week magazine.
By Natasha Alperowicz
Source: Chemical Week
The investment enables the steam cracker to increase the share of renewable and recycled raw materials used in its (ethylene and propylene) production. The move supports the Borealis Strategy 2030 for a circular economy. The Porvoo investment program is expected to be completed in 2025.
Murray Auchincloss, bp’s CEO, said in a statement: “As I set out in February, BP’s destination from IOC [international oil company] to IEC [integrated energy company] is unchanged – and we need to deliver as a simpler, more focused, and higher-value company.
Founded in 1972, Tecnofilm has expanded its product portfolio over the years to offer a wider range of compounds and functional polymers for various industrial applications and technical articles. The company has patented several of its products.
