EuroChem Invests Despite uncertainty of Fertilizer Market

EuroChem, one of the top ten world producers of mineral compost inRussia, will continue with the plans for development  of potassium compost inRussia, but maybe it will involve in other projects as well, as announced by main financial director Andrey Ilyin.

EuroChem, controlled by businessmen Andrej Melnichenko, by big investments in developing projects tries to become global player, despite poor compost market and fear of global flux density of the soil by nutrients.

“We have few hundreds of projects, which together with investing program are around 1 milliard dollars a year”, said Ilyin.

EuroChem, whose total debt now is 3,5 milliard dollars, has 4,5 milliard dollars valid investing program for next five years. They got 1,3 milliard dollars for re-financing  of the debt in August so the ratio of net debt / EBITDA is between 2,0 and 2,5 now.

Ilyin didn’t want to say which program could be put on waiting list. EuroChem plans to make final decision on its project in the value of 1,5 milliard dollars for construction of plant for production of ammonia and urea inUSAnext year.

Company sticks to plans for starting of production of potassium fertilizer inRussiaaround year2017. Inthe mines, the capacity is expected of 8,3 million tones of potassium fertilizer till 2022.

Uralkali, the biggest world producer of potassium fertilizer, and after leaving basic cartel withBelarusin July, search the way how to increase sale volume.

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