Russia: Acron Looks for Self-sufficiency in Raw Materials

OAO Acron is a leading Russian and global mineral fertilizer producer with a diversified product portfolio consisting of multi-nutrient fertilizers such as NPK and bulk blends, and straight nitrogen-based products such as urea, ammonium nitrate and UAN. In 2010, the Group’s output of ammonia and mineral fertilizers (exclusive of own use) totaled 4.6 million tonnes.

Since 2006 they have invested US$250 million in the development of the Oleniy Ruchey project, which aims to produce Acron’s own phosphates within a year as it seeks to boost self-sufficiency in raw materials. In the current year they are going to invest an additional US$200 million and they will build a processing plant at the site with initial capacity of 1 million metric tonnes of apatite concentrate a year, rising to 2 million tonnes in 2016.

The total cost of the project is of about US$1 billion and they hope that the mine, located in the Murmansk region, will start by the end of June 2012. Currently, the Velikiy Novgorod-based Acron is purchasing their phosphate rock from OAO PhosAgro at about US$140 a metric ton including delivery.

The Group also owns a license to develop a potassium-magnesium salts deposit in the Perm region, also located in Russia.

Acron has three production facilities – Acron (Veliky Novgorod, Russia), Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province, China). Acron’s logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea – at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Muuga port. The Group operates distribution networks in Russia and China.

Acron employs over 13,000 people In 2010 the Group’s consolidated revenues under IFRS were RUB 46,738 million (US$ 1,538 million), and net income was RUB 6,279 million (US$ 207 million). Acron’s ordinary shares are listed and traded on the MICEX, RTS and LSE stock exchanges under the symbol “AKRN”.

%d bloggers like this: