PotashCorp claims to be the world's ‘largest fertilizer enterprise’, by capacity, producing the three primary plant nutrients (potash, phosphate and nitrogen). Its products are used by fertilizer, feed and industrial customers on six continents. It has corporate offices in Saskatoon, Saskatchewan, and Northbrook, Illinois. It also has production facilities in five countries. In total, it employs approximately 5,301 people.
History
Potash Corporation of Saskatchewan was formed by the Saskatchewan government in 1975 and, over a period of three years, acquired about 40% of Canada's potash output.
In 1989, it became a publicly traded corporation independent of the Saskatchewan government. Today, the government no longer has any ownership in the company.
PotashCorp is listed on the Toronto Stock Exchange and the New York Stock Exchange. All outstanding shares are available to trade each day under the stock symbol POT.
The company is divided into three sections: potash, nitrogen and phosphate.
Potash
PotashCorp claims that it is the world’s largest potash producer, with an estimated 22% of global capacity and three-quarters of capacity. Its investments in Arab Potash Company (APC) in Jordan, Sociedad Quimica y Minera de Chile (SQM) in Chile, Israel Chemicals (ICL) in Israel and Sinochem Hong Kong Holdings (Sinofert) in China further enhance its position.
More than 150 countries consume potash and 80% of product is traded across borders. The growth markets are in offshore countries with little or no indigenous production, where PotashCorp is a prominent supplier. In many of those countries, nutrient application rates, particularly for potassium, do not achieve a soil nutrient balance that will maximise crop yields.
It produces potash from five mines and mills; and mining rights to potash reserves at a sixth location, all in Saskatchewan; and one mine and mill in New Brunswick.
Rice, oil palm, sugar cane, bananas, oranges and coffee are among the diverse offshore crops that are important for growth in its potash segment.
In North America, all three nutrients are used on corn, wheat, cotton and rice, while nitrogen-fixing soybeans need mainly potash and phosphate.
Nitrogen
PotashCorp produces nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate, and nitric acid.
Industrial customers for its nitrogen products include BASF and DSM. Offshore, growth in industrial products that require nitrogen is being driven by rising incomes in fast-growing nations.
It has nitrogen facilities at four plants in Georgia, Louisiana, Ohio, Tennessee; and one urea plant and four ammonia plants in Trinidad.
Phosphate
Nitrogen and phosphate are important to industry as inputs into a wide range of products that enhance modern living. Industrial customers for its nitrogen products and its phosphoric acid, including purified acid, are based mainly in the US.
They include industrial intermediate and product manufacturers such as ICL and Innophos. Offshore, growth in industrial products that require phosphate is being driven by rising incomes in fast-growing nations.
(1) A mine and processing plant in North Carolina;
(2) A mine and two processing plants in Florida;
(3) A processing plant in Louisiana;
(4) Phosphate feed plants in five US states and one in Brazil; and
(5) Two industrial phosphoric acid plants in North Carolina and Ohio.
Investments and Affiliates
(1) Canpotex;
(2) Arab Potash Company (APC), Jordan (28%);
(3) Israel Chemicals (ICL), Israel (10%);
(4) Sociedad Quimica y Minera de Chile (SQM), Chile (25%); and
(5) Sinochem Hong Kong Holdings (Sinofert), China (20%).
Potash Corporation of Saskatchewan
Strategy & Financial Highlights
The PotashCorp strategy is based on the need to ‘remain the leader and preferred supplier of potash, nitrogen and phosphate products worldwide’. The company states that on the back of a year of record performance its real focus is about how it can move forward. Its life-giving products continue to grow in importance as a larger percentage of the world’s population has greater wealth and wants more nutritious food. (Edited from annual report and company website). ICIS also provides you with key financial data listed in table form.
More about Potash Corporation of Saskatchewan Strategy & Financial Highlights
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