EuroChem to establish joint venture in China to produce fertilizers
29 July 2013, Moscow — EuroChem, Russia’s largest mineral fertilizer producer and a top ten agrochemical company globally, today announces plans to create a joint venture with Migao Corporation, a China-based specialty potash fertilizer producer, in Yunnan, a province in 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 NPK fertilizers 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, commented: “EuroChem is delighted to announce a new joint venture project in China, the largest consumer of fertilizers in the world and a region of strategic importance for us. We already sell over 200,000 tonnes of specialty NPK fertilizers 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 fertilizers in our product mix.
With its focus on specialty potash fertilizers and track record of consistent and reliable supplies of high quality products, Migao Corporation is an ideal partner for EuroChem.”
Liu Guocai, CEO of Migao Corp., commented: “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.”
About Migao Corporation
Migao (TSX: MGO) is a specialty fertilizers producer based in China. Migao Corp. produces and sells specialty potassium (potassium nitrate and potassium sulfate) and compound fertilizers along with their co-products. The company operates eight production sites in China with the total capacity of 620 thousand tones of fertilizers annually.