03 May 2013 10:35 [Source: ICIS news]
LONDON (ICIS)--The construction of a 660,000 tonne/year fertilizer plant by Bagfas will enable the company to replace Turkey’s annual imports of around 300,000 tonnes of ammonium nitrate (AN) and calcium ammonium nitrate (CAN) fertilizers with its own products, Erste Group Bank said on Friday.
“The company is also targeting the export of AN/CAN type fertilizers to the rainy regions of Europe like Germany, Italy and Romania, which are very reliant on these types of fertilizers,” said Evrim Dairecioglu, an Erste analyst who has analysed the likely impact of the €160m ($208m) investment in Bandirma, northwestern Turkey.
The AN/CAN installation, to be engineered by Germany’s ThyssenKrupp Uhde and to be operational by the second half of 2015, would allow Bagfas to produce nitric acid, which together with sulphuric acid and phosphoric acid, makes up the three important acid inputs for compound fertilizer production, Dairecioglu added.
The analyst forecast that the new plant would boost Bagfas’ share of the fertilizer market in Turkey from the 6.8% the company recorded in 2012 into double digits.
“Bagfas has a strong cash position and we think that as of 2016 the plant will be able to generate adequate cashflow to repay Bagfas’ outstanding loans,” Dairecioglu said.
($1 = €0.77)
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