Migao Corporation, a leading producer of specialty potash fertilizers for the Chinese market, announced that it will be constructing a new 100,000 tonne per year specialty compound fertilizer production facility at a new location in Zunyi, Guizhou Province. It will be built in two modules with the initial 50,000 tonnes module scheduled for completion by the end of 2011. Migao has an existing 100,000 tonne specialty compound fertilizer facility operating at full capacity at its Sichuan location.
Migao is currently producing at full capacity, 320,000 tonnes of its two core potash-based fertilizers. With the addition of a 40,000 tonne potassium nitrate 50/50 joint venture with SQM, a new 40,000 tonne potassium sulphate facility near Shanghai in early 2011, and a 40,000 tonne potassium sulphate expansion at Changchun Migao later this year, Migao will have net production capacity of 420,000 tonnes. This figure does not include the co-products ammonium chloride or hydrochloric acid nor does it include 200,000 tonnes of specialty compound fertilizer produced annually at Sichuan Migao and Zunyi Migao.