Russia fertilizer major PhosAgro invests $217m in new urea plant

14 August 2014 13:06 Source:ICIS News

LONDON (ICIS)--Russian fertilizer major PhosAgro and Czech engineering firm Chemoproject Nitrogen on Thursday signed a contract for the design engineering and procurement of equipment for the construction of a 500,000 tonne/year granulated urea production unit.

The state-of-the-art plant will be built at the company's PhosAgro-Cherepovets site in the Vologda region in northwest Russia, the Moscow-headquartered company revealed in a statement. The unit will increase PhosAgro Group's overall urea production capacity by 50% and could make PhosAgro-Cherepovets the largest single producer of urea in Russia.

"The construction of the third urea production unit at PhosAgro-Cherepovets is part of a comprehensive investment project to commission a new energy-efficient 760,000 tonne/year ammonia plant in 2017 for the production and processing [of] mineral fertilizers," PhosAgro said, adding: "Total investments in the construction of the new urea unit and production infrastructure, which the company plans to finance through borrowing, are estimated at 7.8 billion Russian roubles [$217m].

"The project is an integral part of PhosAgro's long-term modernisation strategy...and aims to completely upgrade production capacities using the most advanced technology available."

PhosAgro CEO, Andrey Guryev, said: "Realising this complex and high-priority project to build a modern ammonia production facility to produce and further process into mineral fertilizers, including the new urea plant, will help us to strengthen further our position in the global fertilizer market and to expand our product range.

"The new urea plant will help to create new highly-skilled jobs, while also increasing our operating and financial efficiency. The project will increase our fertilizer production capacity by 25% by 2017."

Tomas Plachy, Chemoprojeсt Nitrogen CEO, added: "We are delighted to continue our co-operation with PhosAgro, a company that is always looking to apply best international practice and know-how in design engineering, and to use the latest technology in the fertilizer production process."

By Richard Ewing