PhosAgro Wins at Russian Business Leaders: Dynamics and Responsibility Competition Run by Russian Union of Industrialists and Entrepreneurs

Mar 25, 2016, 05:15 ET from PhosAgro

MOSCOW, March 25, 2016 /PRNewswire/ --

PhosAgro, one of the world's leading vertically integrated phosphate-based fertilizer producers, has won the Dynamic Business Development award at the Russian Business Leaders: Dynamics and Responsibility - 2015 competition. The competition is organised by the Russian Union of Industrialists and Entrepreneurs (RUIE). The RUIE first organised this annual competition in 1997.

The competition aims to support the sustainable development of companies in line with the Russian Federation's long-term economic interests, and to identify fast-growing companies every year based on their economic and social performance.

The winners received their awards today, 24 March, during the RUIE's Congress as part of Russian Business Week, which was attended by President Vladimir Putin. The certificate was presented to PhosAgro CEO Andrey Guryev, a member of the RUIE Management Board.

Victor Cherepov, Executive Vice-President of the RUIE, said that PhosAgro displayed remarkable growth throughout the competition's five-year evaluation period, becoming a flagship enterprise in Russia's mineral and chemical industries, as well as securing its own niche in the world market.

"PhosAgro has upgraded its existing capacities, while also bringing new capacities online, and as a result has achieved a substantial increase in its production and sales of mineral fertilizers," said Cherepov. "Labour productivity more than doubled over the five-year period. The Company's energy-efficiency programme deserves special mention. Over five years, it managed to cut its per unit energy costs by 40%. After commissioning its own generating capacities, which is integrated with fertilizer production lines, a number of the Company's entities can meet virtually all of their own energy needs."

Thanking the RUIE for the high marks it gave Company, CEO Andrey Guryev said that PhosAgro's entire workforce deserved credit for these successes.

"Our Company is celebrating its 15th anniversary this year, and we have come a long way in that time," Guryev said. "Our aim throughout has been to be the best company in the world in our sector. Over this time, we have invested around RUB 160 billion, which has allowed us to double our production capacity and take the Company to a new technological level. We are looking to the future and continuing to make large-scale investments in high-tech production. This will significantly expand our production of high value added fertilizers. Our role in the global food production chain will grow thanks to supplies of high-quality fertilisers with no harmful impurities. Our products are currently in high demand in 100 countries around the world, and we remain a leading supplier of fertilizers to the Russian market. Ensuring that the needs of Russian farmers are being met is a constant priority for our Company."

For PhosAgro, the five-year period assessed by the panel of judges, from 2011 through 2015, was indeed outstanding. During this time, the Company increased its production of agrochemical products by more than 35%, producing 6.8 million tonnes of fertilizer and feed phosphates in 2015. PhosAgro increased the number of fertilizers grades it offers over the last five years from 14 to 33. Total investments, primarily in expanding production and technical upgrades, came to more than RUB 112 billion.

In the same period, PhosAgro was able to significantly reduced the cash cost of production per tonne of DAP, from USD 280 in 2011 to USD 128 at the end of 2015. This makes PhosAgro one of the most efficient producers of phosphate fertilizers in the world.

Over the past five years, the following facilities were built and put into operation: an industrial complex that includes urea production with a capacity of 500 ths tonnes per year, a gas turbine unit with a capacity of 32 MW and an aluminium fluoride plant with a capacity of 35 ths tonnes per year at the Cherepovets production site. A production facility making complex PKS fertilizers with a capacity of 100 ths tonnes a year was launched at the Company's Volkhov branch, and a storage facility for liquid ammonia with a capacity of 8,000 tonnes was put into operation at the Balakovo site. The second Yuksporsky tunnel and Main Shaft No 2 were commissioned at Apatit's Kirovsk mine. A new bulk terminal at Ust-Luga was also commissioned.

At present, an investment programme for the construction of new production facilities is being implemented at every one of the PhosAgro Group's member companies. The largest investments are being made at Apatit, where the modernisation of the apatite-nepheline beneficiation plant (ANOF-3) is being completed, and at PhosAgro-Cherepovets, where an ammonia plant with a capacity of 760 ths tonnes per year is being built, as is a urea plant with a capacity of 500 ths tonnes per year.

Notes to Editors 

PhosAgro is one of the leading global vertically integrated phosphate-based fertilizer producers. The Company focuses on the production of phosphate-based fertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of not less than 39%), as well as ammonia and nitrogen-based fertilizers.

The Company is the largest phosphate-based fertilizer producer in Europe, the largest producer of high-grade phosphate rock worldwide and the third largest MAP/DAP producer in the world (excluding China), according to Fertecon. PhosAgro is also one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia.

PhosAgro has 2.1 billion tonnes of resources (according to JORC) of high quality apatite-nepheline ore. 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 fertilizer 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's 2015 IFRS revenue was over USD 3.1 bln and EBITDA was USD 1.4 bln.

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