05 November 2013 12:21 [Source: ICIS news]
LONDON (ICIS)--Leading Russian phosphate-based fertilizer producer PhosAgro on Tuesday announced the start of construction of a new, energy efficient ammonia production plant with a capacity of 760,000 tonnes/year at PhosAgro-Cherepovets in the country's Vologda region.
Scheduled to start production in 2017, the plant will boost the company's ammonia production capacity by nearly 70%, "enabling the company to reach full self-sufficiency in this raw material and creating a foundation for further development of PhosAgro's Cherepovets chemical complex", PhosAgro said in a statement, adding a portion of the ammonia produced will be sold to the market.
Total investments into the production facility and related infrastructure are expected to exceed Russian roubles (Rb) 25bn ($772m, €572m), with PhosAgro saying the facility "will rank among the best in the world in terms of raw materials and energy consumption, as well as labour productivity".
"Natural gas consumption per unit produced is expected to be 20% lower than the current average for ammonia production facilities in Russia (945 m3/tonne)," the Moscow-headquartered company disclosed.
"Operating costs are expected to be 20% lower than those of the other ammonia lines currently operating at PhosAgro-Cherepovets. The new facility will also meet the most stringent environmental and safety standards."
The construction contract with an international consortium led by Mitsubishi Heavy Industries Ltd was signed during the St. Petersburg International Economic Forum in June 2013. The consortium also includes Sojitz and Renaissance Construction. The licensor of the ammonia production technology is Denmark's Haldor, a global engineering company.
PhosAgro CEO Andrey Guryev said: "This high-priority project is expected to enable PhosAgro to strengthen its position as one of the world's leading vertically integrated producers of phosphate-based fertilizers and to increase shareholder value.
"In addition, there will be new highly productive jobs created by the completed ammonia line, and payments into local and federal budgets will increase."
PhosAgro is the largest phosphate-based fertilizer producer in Europe, the largest producer of high-grade phosphate rock worldwide and the second largest monoammonium phosphate/diammonium phosphate (MAP/DAP) producer in the world (excluding China).
($1 = €0.75, €1 = Rb43.70, $1 = Rb32.38)
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