EuroChem is among the word's leading producers of nitrogen and phosphate- based nutrient and now announces a new joint venture with Chinese potash producer, Migao. Together, the two companies will produce up to 60,000 tonnes of potassium nitrate and 200,000 tonnes annually in Yunnan province, China beginning in 2014.
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 the future."
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."
Chinese soil is in danger of an imbalanced nutrient profile as a result of excessive reliance on nitrogen in the form of urea. Bringing nitrogen and phosphate production together with potassium production will improve the availability of NPK complexes in China.
Despite the fact that China is on the other side of the globe, pricing crunches there impact pricing here in the United States. The new deal will help insulate U.S. retail pricing by limiting world demand for nutrient.