20th Nov 2008 13:11
November 20, 2008
Acron Group Announces Price Cap for Mineral Fertilisers Sold to Russian Farmers
In pursuance of the Cooperation Agreement, signed between the Russian Fertilisers Producers Association and Russian Agro-Industrial Association with the aim to meet the demand of domestic farmers in 2008 through 2012, companies of Acron Group are setting price cap for their mineral fertiliser sales to Russian farmers.
Until the end of 2008, price cap for mineral fertilizers is set at the level of the current market prices, i.e. RUB 3,122 per tonne of ammonium nitrate; RUB 5,202 per tonne of urea; RUB 8,130 per tonne of NPK 16:16:16*.
The price cap will be raised for H1 2009 to RUB 5,000 per tonne of ammonium nitrate; RUB 7,700 per tonne of urea; RUB 10,200 per tonne of NPK 16:16:16*. The higher price cap effective January 1, 2009 is due to upcoming increase in the cost of raw materials and other expenses.
Acron believes that against the backdrop of highly volatile financial markets clear and predictable sales policy is vital. Price cap will allow Russian farmers to plan and manage their costs efficiently.
*In bulk; price basis – FCA, VAT exclusive
For Further Information:
Acron
Elena Kochubey - Tel: +7 (495) 777 08 65
Corporate Communications
Ilya Popov - Tel: + 7 (495) 411 55 94
Chief Expert
Information and Research Department
Notes to editors
Acron is a leading Russian and global mineral fertiliser producer with a diversified product portfolio consisting of multi-nutrient fertilisers such as NPK and bulk blends, and straight nitrogen-based products such as urea, ammonium nitrate and UAN. In 2007, the Acron group's total fertiliser sales volume was 4.4 million tonnes. The Company's key markets are Russia, China and other fast growing developing markets of South Asia, Latin America and former Soviet Union.
Acron employs over 12,000 people in Russia and China. In 2007 the Acron group's consolidated revenues under IFRS were RUR 31,105 million (US$ 1,267 million), and net income was RUR 5,668 million (US$ 231 million), and for the three months ended 31 March 2008 consolidated revenues under IFRS were RUR 11,661 million (US$ 496 million) and net income was RUR 3,963 million (US$ 169 million). Acron's ordinary shares are listed and traded on the MICEX, RTS and LSE stock exchanges under the symbol "AKRN".
Acron has three production facilities - Acron (Veliky Novgorod, Russia), Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province, China). Acron's logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea - at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Tallinn port. The Company operates distribution networks in Russia and China.
Acron plans to enhance its vertical integration and secure supplies of phosphate and potash inputs through the development of its own mineral resource base. The Company owns licences to develop two apatite-nepheline ore deposits in the Murmansk region and a potassium-magnesium salts deposit in the Perm region (both located in Russia).
Related Shares:
AKRN.L