9 Looking ahead
We are working hard to secure our future as the fourth producer of N, P and K fertilizers in the world, and reaching the top five by nutrient content and profitability. On the previous pages, we have given you a taste of how we plan to do this, and what we have achieved already. On the following pages, we will discuss our business in further detail.
Key considerations
Earnings
- Sustainable long-term cost competitiveness in N and P in Western hemisphere
- Expected future global cost leadership in K
- Benefits from iron ore as a co-product of apatite mining
Growth
- EuroChem expects its investment program to help it grow from 2.1% of global fertilizer production by nutrient capacity today to 3.0% by 2016 (after completion of phase II of the Gremyachinskoe potash project)
Risks
- Technical risks relating to the construction of potash mines
- Shrinking natural gas cost differential between Russia and Europe/US
- Limited free cash flow in 2011-2013 as a result of heavy capital expenditure
Increasing our
corporate momentum
Our investment story
- By 2021 we plan to have 8 MMT p.a. of potash capacity on line
- Owning our own raw materials in P and K, pursuing similar opportunities in N
- Strong cash flow and balance sheet
- Continued investments in new capacity, efficiency and sustainability
- Enhanced vertical integration throughout the value chain
- Strong, transparent governance and award-winning environmental and social responsibility programmes
