Our vertically integrated business and access to lower cost raw materials and energy provides distinct cost advantages over many of our competitors. Our investments in major potash reserves will place us at the forefront of global fertilizer production when they come on stream.
EuroChem is a vertically integrated agrochemical company, combining low-cost natural resources and production bases supported by wholly-owned logistics assets and a global advisory, sales and distribution platform.
We currently manufacture nitrogen and phosphate fertilizers and will soon launch potash operations to further enhance our product mix. Our range is of high-quality and includes standard and commodity products as well as a growing slow release and specialty fertilizer product offering, on which there is greater emphasis.
Our production base is becoming more international, with assets in Russia, Lithuania, Kazakhstan and Belgium, plus a joint venture in China. These assets have ready access to key markets through our logistics and distribution network that currently covers more than 25 countries.
We are one of the fastest growing fertilizer majors and plan to be a top five producer by nutrient capacity within the next three years.
EuroChem is one of the world’s largest producers of nitrogen-based fertilizers and organic synthesis products, with an ammonia capacity of 3.2 MMT pa. Our nitrogen plants produce a wide range of mineral fertilizers such as urea, AN, UAN, and CAN. Our offering has continued to grow, now encompassing specialty products such as slow-release, non-chloride, and inhibitor-treated fertilizers. The latter products delay conversion of urea into ammonium and ammonia, leaving more nitrogen in the soil for crops. We are the only producer of melamine in Russia and produce industrial products such as nitric acid and methanol and industrial gases, including argon, nitrogen, and oxygen.
The high-quality phosphate rock, mined and processed at our Kovdorskiy mine in Russia, is as a key component of our phosphate fertilizer production operations. Our manufacturing plants in Russia and Lithuania produce MAP, DAP, NP, feed phosphates as well as a range of regular and tailored complex NPK grades. Our Kovdorskiy mine also produces iron ore concentrate that we sell on the open market and is the world’s only producer of baddeleyite concentrate. Our phosphate fertilizer plants have a combined 1.2 MMT pa of phosphoric acid capacity and 3.0 MMT pa of sulphuric acid capacity. Our plant in Lithuania also produces aluminium fluoride which is used in the manufacture of aluminium, glass and optics as well as the tanning industry.
The development of capacity enabling us to mine and supply potash is one of our main strategic priorities. We are constructing mining and processing facilities at two locations in Russia; at the Gremyachinskoe deposit (EuroChem-VolgaKaliy, Volgograd region) and at the Verkhnekamskoe deposit (EuroChem Usolskiy, Perm region).
The two sites will have over 8.3 MMT KCI (5.0 MMT K2O) of capacity once fully ramped up, which is equivalent to approximately 10% of current global supply. This will make us one of only four companies in the world to produce fertilizers in all three primary nutrient categories and a top five global producer by total nutrient capacity. We also expect have one of the lowest ‘delivered to’ costs thanks to our mine design, use of the latest technology, low energy prices and access to our own ports and transhipment operations. In fact, while industry experts project our Usolskiy operations to be amongt the lowest cost in the world, we expect our VolgaKaliy mine, which is 1,500km closer to port, to be the most competitive potash operation globally