Migao, SQM agree potassium nitrate plant in China

20 May 2008 14:15  [Source: ICIS news]

TORONTO (ICIS news)--Fertilzer firms Migao and Sociedad Quimica y Minera de Chile (SQM) have agreed to form a 50:50 joint venture to build a 40,000 tonne/year potassium nitrate facility in China, the companies said on Tuesday.

 

The output from the $20m (€13m) plant would go to China’s domestic market and into export, they said.

 

The plant was expected to be operational in the first quarter of 2009, they said but did not disclose where in China it would be built.

 

Toronto-listed Migao would, through its wholly owned subsidiaries, continue to produce potassium nitrate from its facilities in China, and distribute it through the newly formed 50:50 joint venture, they said.

 

The joint venture would distribute any exports of potassium nitrate produced by Migao or the venture as well as imports of SQM's potassium nitrate to China, they added.

 

"We are thrilled at this opportunity to work with Migao in the growing Chinese market, as we believe the synergies we are creating will benefit us both," said SQM CEO Patricio Contesse.

 

"This agreement will allow us to further develop our presence in one of the most important markets for the fertilizer industry, and it is consistent with our strategy of strengthening our worldwide leadership position in our three core businesses."

 

Migao CEO Liu Guocai added: “This mutually beneficial agreement leverages SQM's strong international network and Migao's established presence throughout China."

 

"This agreement expedites Migao's ambition of becoming recognised as a leading international fertilizer company," said Liu.

 

($1 = €0.65)

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly