PhosAgro, Russia’s leading chemical holding company producing fertilizer, phosphates, and feed phosphates, intends to set aside RUB82.3 billion (USD1.462 billion) for capital expenditures in the four-year period from 2017 to 2020. The figure was announced during the company’s presentation at its Investor Day held on March 28, 2017.
Although the total projected capex figure is high, PhosAgro’s capital expenditures in 2017 will actually go down in relation to the figure seen in the previous year by nearly one third to some RUB29.5 billion (USD524 million).
The reduction in capex is attributable to PhosAgro’s completion of ammonia and urea manufacturing facilities in Cherepovets. From 2018 to 2020, PhosAgro will invest RUB52.8 billion (USD939 million) to develop and maintain its production targets, an amount that works out to approximately RUB17.6 billion (USD313 million) per year.
The company’s investment roadmap for 2020 contemplates a 20-percent capacity expansion from 7.4 million tons in 2016 to 8.7 million tons by 2020.
PhosAgro’s materials reflect that RUB38.8 billion (USD689 million) of the total capital expenditures is to be earmarked for Apatit and RUB27.4 billion (USD487 million) is to be allocated for augmenting the company’s phosphate mining capacity.
As part of its investment program, PhosAgro plans to put RUB43.5 billion (USD773 million) in enhancing its processing capacity. An amount of RUB8.9 billion (USD158 million) is needed to complete the Cherepovets ammonia and urea projects. A sum of RUB15.2 billion (USD270 million) will go to facilitating the production of phosphates and sulfuric acid at the Cherepovets and the Balakovo facilities. PhosAgro’s outlays for sustaining its processing capacity will stand at RUB12.7 billion (USD226 million).
As for the company’s individual products, PhosAgro’s NPK/NPS fertilizer will account for 37 percent of production by 2020, monoammonium phosphates for 21 percent, diammonium phosphates for 15 percent, urea for 18 percent, feed monocalcium phosphates for four percent, and ammonium nitrates for five percent.
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