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.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release may include forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and other provincial securities laws in Canada. These forward-looking statements include, among others, statements with respect to our objectives and goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", and "continue" (or the negative or grammatical variations thereof), and words and expressions of similar meaning, are intended to identify forward-looking statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results, performance or achievements may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on forward-looking statements as a number of important factors, many of which are beyond our control, could cause actual results, performance or achievements to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors that relate to our company include, but are not limited to: risks related to raw materials; execution of the business plan; expansion plans; dependence on key personnel; key relationships; dependence on key customers; dependence on key suppliers; competition; market factors and volatility of commodity prices; environmental risks and hazards; operating risks; proprietary rights; infrastructure; future capital requirements; technical substitution; exchange rate fluctuations; insurance; foreign operations; tobacco industry considerations; weather conditions and natural disasters; control by management; seasonality; dividends; conflicts of interest; global financial conditions; and the implementation of the Labour Contract Law in the People's Republic of China in 2008. In addition to the foregoing risk factors, there are also risks related to doing business in China which include, but are not limited to: state ownership; government sector intervention; foreign investment; repatriation of profit and currency conversion; tax; shareholders' rights and enforcement of judgements; developing legal system; protection of intellectual property rights; permits and business licenses; appropriation; and availability of land. Should one or more of these factors materialize, or should our estimates or underlying assumptions prove incorrect, actual results, performance or achievements may vary materially from those described in forward-looking statements.
We caution that the foregoing list of important factors that may affect our future results, performance or achievements is not exhaustive. When reviewing our forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found under the "Risk Factors" sections in our Annual Information Form and annual MD&A and elsewhere in our filings with Canadian securities regulatory authorities. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. We cannot assure readers that actual results, performance and achievements will be consistent with these forward-looking statements, and the differences may be material. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.
To be added to Migao's email distribution list for news releases or to be removed from the list, please send a request to firstname.lastname@example.org.
FOR FURTHER INFORMATION PLEASE CONTACT:
Vice President Corporate Finance
416-869-1108 ext. 2104