February 15, 2017 at 10:50 (Fertilizers)
Fertilizer prices have been falling in the recent years causing an erosion in the fundamentals of the industry, to which is has responded consolidating.
PotashCorp (POT) and Agrium (AGU) announced a merger of equals expected to be completed by the middle of 2017 that would create the world’s largest crop-nutrient supplier with a market value of about $26 billion. For an understanding of the significance of this new enterprise compare with the market capitalization of Mosaic (MOS) of $8.9 billion or CF Industries (CF) of $5.6 billion.
PotashCorp Allan Potash Operations
This is a deal of giants. PotashCorp is the largest world fertilizer company by nutrient capacity (14.2 million tonnes p.a.) and they are a low-cost potash producer (in the recent quarter they outflanked competition with the lowest cost per ton at $127 of potash produced). Agrium is a leading global producer and marketer of agricultural nutrients with a 4% of the global production capacity of potash, a 2% of ammonia, a 1% of urea, and 1% of phosphate. Agrium’s retail unit buys 10 million tons of fertilizer annually. The combined company would control the majority of North America’s potash production and more than 30 percent of North American nitrogen and phosphate production.
Agrium Vanscoy Potash Operations
The new company will be a leader in the fertilizer industry with close to 20,000 employees and operations and investments in 18 countries. PotashCorp shareholders will own 52% of new company.
The merger will result in low regional market overlap as the majority of PotashCorp fertilizer assets are in the eastern half of the U.S., Agrium’s nitrogen and phosphate assets are concentrated in western North America. It is expected to generate up to US$500 million of annual operating synergies mainly from distribution and retail integration, production and SG&A optimization, and procurement.
The merger of the world’s largest fertilizer producer with the world’s largest ag-retailer is drawing the attention of the regulators and farmer groups.
August 31, 2016 at 07:17 (Industrial Phosphates)
EuroChem Group 100% owned company Lifosa plans to invest approximately 75 million euros in the production of food-grade phosphoric acid.
The Kedainiai headquartered company was founded in 1963 and deals with the production and wholesale of nitrogen-phosphorus fertilizers, feed phosphates, and aluminum fluoride.
Lifosa netted a profit of 61.617 million euros last year, up by 35.2% from 45.579 million euros in 2014. Its sales revenue rose by an annual 18.3% to 412.687 million euros.
August 16, 2016 at 18:31 (Phosphate Fertilizers)
July 31, 2016 at 07:39 (Phosphate Fertilizers)
Despite the weak global fertiliser demand, Russian producer Uralchem, one of the world’s largest ammonia and nitrogen fertilisers producer, is increasing its phosphoric acid production by the end of 2016. The ramp-up is part of the group’s long-term strategy to reinforce existing market share. Following the reopening of its Voskresensk Mineral Fertilizers business, Uralchem quadrupled MAP output in the first half of the year despite the current “complex global market”. Average MAP and DAP (FOB Baltic Sea) prices for the first three months of 2016 were $353/tonne and 366$/tonne, respectively, trailing their first quarter 2015 average prices by 27%for MAP and 25% for DAP.
Tuticorin-based Greenstar Fertilizers (GSFL) acquired its phosphoric acid capacity from SPIC and now they plan to double their 75,000 tonnes per annum nameplate capacity. The revamping program is expected to take 12 to 18 months to be completed. They also plan to create in the next three years an additional 15,000 tonnes ammonia storage facility and a 600,000 tonnes DAP production facility.
India’s current phosphoric acid capacity is slightly over two million tonnes P2O5 and it’s DAP capacity is over 3.5 million tonnes P2O5.