Press release from Marketwire
Migao To Establish Joint Venture With EuroChem To Produce Fertilizers In China
Monday, July 29, 2013
Migao To Establish Joint Venture With EuroChem To Produce Fertilizers In China09:00 EDT Monday, July 29, 2013
TORONTO, ONTARIO--(Marketwired - July 29, 2013) - Migao Corporation (TSX:MGO), a China-based specialty potash fertilizer producer, today announced plans to create a joint venture with EuroChem, Russia's largest mineral fertilizer producer and a top ten agrochemical company globally, to produce up to 60,000 tonnes of potassium nitrate and up to 200,000 tonnes of chloride-free NPK fertilizers in Yunnan, a province in southern China. EuroChem and Migao Corporation plan to begin the construction of a plant in 2013 and launch production in 2014.
Liu Guocai, CEO of Migao Corp., commented: "Migao Corporation looks forward to working together with EuroChem as we see growing demand for specialty products in the Chinese agricultural market. I am confident that our customers will benefit from the winning combination of our specialty potash focus and experience in the Chinese market and EuroChem's strong global position and expertise in the nitrogen and phosphate segments, and potash in the future."
Dmitry Strezhnev, CEO of EuroChem, commented: "EuroChem is delighted to announce a new joint venture project in China, the largest consumer of fertilizers in the world and a region of strategic importance for us. We already sell over 200,000 tonnes of specialty NPK fertilizers in the Chinese market, and the new joint venture is a next logical step as we continue to expand our presence in the region and aim to increase the share of specialty fertilizers in our product mix. With its focus on specialty potash fertilizers and track record of consistent and reliable supplies of high quality products, Migao Corporation is an ideal partner for EuroChem."
Established in 2001, EuroChem has grown into one of the world's leading nitrogen and phosphate-based fertilizer producers. With revenues amounting to $5.4 billion in 2012, EuroChem is approaching a global top five position among fertilizer companies. Headquartered in Moscow, it operates production facilities in Russia and Belgium, and has a network of distribution and sales offices globally.
With its core business centered on nitrogen and phosphate fertilizers, EuroChem is currently developing two sizeable greenfield potash projects in Russia, which will provide it with over 8 million tonnes of annual potash capacity. EuroChem employs 20,000 people worldwide. The Company is committed to its people and adheres to international standards of corporate governance and sustainability.
Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate, potassium sulphate, and specialty compound fertilizers) to China's agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Please visit www.migaocorp.com for further information.
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Vice President Corporate Finance
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