26th Oct 2012 11:54
For Immediate Release 26 October 2012
PhosAgro Launches new Urea Production and Electricity Generation Capacities
Cherepovets - PhosAgro ("PhosAgro" or "the Company") , a leading global vertically integrated phosphate-based fertilizer producer, announces that Russian Federation Prime Minister Dmitry Medvedev, during his visit to the Vologda Region, participated in a ceremony to mark the official launch of operations of PhosAgro's new urea production complex and a gas turbine electricity station in Cherepovets.
Deputy Prime Minister Arkady Dvorkovich, Vologda Region Governor Oleg Kuvshinnikov, Russian Union of Chemists Vice President and Federation Council Member Andrey Guryev, Presidential Plenipotentiary Envoy to the Northwest Federal District Nikolai Vinnichenko, Deputy Head of the Industry Department of the RF Government Igor Malyshev and PhosAgro CEO Maxim Volkov attended the ceremony.
This is the first full-cycle urea line constructed in recent Russian history. The construction of the production and generation complex, which combines 500 kt p.a. of urea capacity with a 32 MWt gas turbine electricity plant, is one of PhosAgro's key projects in its long term modernisation strategy.
The integrated urea production and power generation complex was built in record time using leading-edge technologies, and it is a pioneer in the Russia mineral fertilisers industry, setting the example for others in terms of industrial energy efficiency.
The urea complex is unique not only because of the short construction time - the best available technologies and modern materials were utilized to build the production units and supporting facilities. This makes the complex the etalon of energy efficiency, resource use, environmental safety and productivity.
Based on expected energy use (heat and electricity), excluding electricity generation, expert estimates show that the new urea production facility will be 12% more efficient than other urea lines currently operating in Russia.
The new complex is expected to enable production of approximately five thousand tonnes of urea per employee per year.
With the launch of the new electricity station, PhosAgro's Cherepovets facilities will now have a total generation capacity of 134 MWt. Integration of the urea production and electricity generation facilities will enable the Company to reduce per unit energy costs by several times.
Total capital expenditure on construction of the new urea plant and electricity station was approximately RUB 7.6 bln. Leading Russian design bureaux were engaged to design the production complex and substation. Construction work was carried out by Russian contractors.
Total production of mineral fertilisers at PhosAgro's Cherepovets site following the launch of the new urea complex will exceed 4 million tonnes.
More than 1,000 workers were involved in the project. One hundred fifty three jobs for highly-qualified workers have been created in urea production and at the gas-turbine station.
In addition to increasing urea output, which is in demand around the world, and expected increase in tax payments to the regional budget, infrastructure development and related sectors in the region have also been boosted, along with residential accommodation for employees of PhosAgro Cherepovets.
The project has great environmental significance. The new urea production will minimise the effect of carbon dioxide on the environment. Carbon dioxide will be used as a raw material in urea production, which is extremely important for the environment of Cherepovets, an industrial city.
To support training for staff to work at this high-tech facility and other subsidiaries of PhosAgro-Cherepovets, PhosAgro and the Vologda Region government have supported the establishment of a Chemical-Technical College and a Faculty of Inorganic Substances and Fertilisers Technology at Cherepovets State University.
For further information please contact:
OJSC PhosAgro+7 495 231 2747Irina Evstigneeva, Head of Corporate Finance and Investor RelationsTimur Belov, Press OfficerM:CommunicationsSam [email protected]+44 (0) 20 7920 2356Notes to EditorsAbout PhosAgro
PhosAgro is one of the leading global vertically integrated phosphate-based fertiliser producers. The Company focuses on the production of phosphate-based fertilisers, feed phosphate and high-grade phosphate rock (P2O5 content of not less than 39%), as well as ammonia and nitrogen-based fertilisers. The Company is the largest phosphate-based fertiliser producer in Europe, the largest producer of high-grade phosphate rock worldwide and the second largest MAP/DAP producer in the world (excluding China), according to Fertecon.
PhosAgro has 2.1 billion tonnes of resources (according to JORC as of 1 June 2011) of high quality apatite-nepheline ore, representing over 75 years of production (at current production levels). The Company also controls substantial Al2O3 resources, and has more than 41% of Russia's rare earth oxides resources.
The Company's mines and phosphate rock production facilities are located in the mountainous areas of the Kola Peninsula in the Murmansk region of northwest Russia, whereas its fertiliser and feed phosphate production assets are located near the city of Cherepovets in the Vologda region and near the city of Balakovo in the Saratov region of southwest part of European Russia. PhosAgro reported 2011 IFRS revenue of USD 3.4 bln and 2011 EBITDA of USD 1.2 bln. As of 31 December 2011, the Сompany's net debt / EBITDA ratio was equal to 0.43x.
For further information on PhosAgro please visit: www.PhosAgro.com
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