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EuroChem Targets 8 Million Tons of Potash Capacity in 10 Years

EuroChem, Russia’s largest nitrogen- fertilizer producer, is targeting potash output capacity of 8 million metric tons in the next 10 years as it seeks to become self-sufficient in raw materials.

EuroChem may also buy natural-gas and phosphate deposits in Russia or abroad, Chief Financial Officer Andrey Ilyin said on a conference call. The Moscow-based company has two potash fields under development and isn’t yet producing the mineral.

“If you put the Gremyachinskoye and Verkhnekamskoye projects for us together, the final capacity in potash that we are looking to have is 8 million tons,” Ilyin said today. “But it will only be achieved now in 2021.”

The company plans to reach 2.3 million tons in potash output capacity in 2014 and double that by 2016, he said. Potash is a form of potassium used in fertilizers to boost crop yields.

To contact the reporters on this story: Marina Sysoyeva in Moscow at msysoyeva@bloomberg.net; Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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