–EuroChem eyes potash distribution assets in China, other regions (Mail Online)
Swiss-based EuroChem is looking to build distribution channels in four key potash markets including China during the next few years as it builds two new mines, its chief financial officer said on Wednesday.
EuroChem is nearly halfway through the $7bn construction of two mines in Russia that will add to a global surplus of capacity that has helped pressure potash prices to decade-lows.
The mines make sense for EuroChem because of their low cost, based on cheaper labor, energy and materials in Russia, said a company source.
Distribution assets could include production plants, alliances with importers, rail cars or port terminals.
The first couple years of potash production will likely satisfy EuroChem's core markets in Europe, Russia and surrounding countries. But as output expands, the company will export to China, Southeast Asia, India and Brazil starting around 2020, the source said.
EuroChem, which has revenue of $4.6bn, expects to complete construction of its Volgakaliy and Usolskiy mines in Russia's Volgograd and Perm regions, respectively, by late 2017.
EuroChem may produce 800,000t to 900,000t of potash in 2018, climbing to 8.3MMt annually by 2026. |
Thread abonnieren
