Russia's PhosAgro begins consolidation of Metachem

30 November 2012 13:08  [Source: ICIS news]

LONDON (ICIS)--Russian fertilizer producer PhosAgro on Friday announced it had reached an agreement with the other participants in Metachem to increase its ownership of the fertilizer manufacturer to 100%.

In a brief statement, PhosAgro said total investment within the agreement will amount to rubles (Rb) 1.2bn ($38.9m) and the consolidation will boost PhosAgro's output of several fertilizers, including potassium sulphate (SOP) and sodium tripolyphosphate (TPP).

“This transaction will increase PhosAgro’s direct ownership in Metaсhem’s authorised capital to 66.79%, and PhosAgro Group’s total ownership from 24% to 74.76%,” it added.

“As a result of the consolidation of Metachem’s production facilities, PhosAgro’s potassium sulphate capacity will increase by 80,000 tonnes/year and its sodium tripolyphosphate capacity will increase by 130,000 tonnes/year.

“In addition, PhosAgro’s sulphuric and phosphoric acid production capacities will increase by 4.5%, or 215,000 tonnes/year, and 4.1%, or 80,000 tonnes/year of P2O5, respectively.”

Separately on Friday, PhosAgro announced the reorganisation of two of its 100%-owned subsidiaries through the consolidation of CJSC Biotechnology into CJSC Agro-Cherepovets.

The merger is part of PhosAgro’s programme aimed at optimisation of the group’s subsidiaries structure. The company’s stake will not change after the reorganisation.

($1 = Rb30.8)

By: Richard Ewing
+44 208 652 3214

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