Adding value through low-cost vertical integration
Our world-class reserves underpin advanced, cost-efficient and flexible production capacity, allied to logistics and distribution assets that provide distinct cost advantages and economies of scale.
Our reserve base includes natural gas, apatite ore, iron ore and potash.
Natural gas is the key constituent of ammonia, the primary component of nitrogen-based fertilizers. We buy some 75-80% of our gas requirements from the market and have acquired our own operator, Severneft-Urengoy, to produce the remaining 20-25% of our total annual needs. The weakening of the Russian rouble has considerably lowered the cost of Severneft-Urengoy gas in US dollar terms. Delivered to Novomoskovskiy Azot, as of 2016, the cost of natural gas from Severneft-Urengoy had decreased to approximately $1.00/mmBtu.
We have access to significant reserves of magnetite-apatite ores (high quality phosphate rock) in Russia and phosphate rock in Kazakhstan. As a considerable addition to our phosphate segment performance, we also extract baddeleyite and iron ore concentrates as coproducts of apatite beneficiation. We well both these products on the market, historically to Asian to Russian customers.
We have invested in some of the world’s biggest reserves of potash in Russia. When our two main sites come on stream, we will be one of only four fertilizer producers globally to produce nitrogen, phosphate and potash based fertilizers.
We own and operate plants in Russia, Belgium, Lithuania and China and create more than 100 commodity and specialty products including an extensive mix of nitrogen, phosphates and complex fertilizers, acids, gases, de-icing agents, organic synthesis products and mineral raw materials. These geographically and technically diversified assets and their associated product mix allow us to respond rapidly to changing market demand, offering competitive advantages in global markets.
Our manufacturing processes also allow us to create other products such as melamine and merchant-grade synthetic acetic acid. We also produce animal feed phosphate, which is an important supplement for cattle, chicken and pigs. EuroChem is the world’s only producer of baddeleyite concentrate, which is used in the production of refractories and electroceramics. As well, it is Russia's only producer of melamine, which has a wide application in the construction and automotive industries.
We own and operate rolling stock. These are linked to our transhipment operations at the ports of Tuapse and Murmansk in Russia and Sillamäe in Estonia. We also have plans to potentially increase our cargo and transhipment capacity as our potash production comes online.
Sales and distribution
Our efficient global distribution network enables us to serve our extensive customer base of more than 6,000 clients in over 100 countries. It also plays a key role in advising customers on the selection and use of fertilizers to optimize their crop yields. Our sales and distribution operations span five regions: Europe, Russia/CIS, North America, Latin America and Asia. These are managed through our network of regional offices in Russia, Ukraine, Belarus, Germany, Spain, Italy, Greece, France, Turkey, Singapore, China, Brazil, Mexico and the USA.