Management report
Logistics and international sales
Logistics
Logistics is not a reportable business segment, but represents an important part of our vertically integrated business model and makes an important contribution to our competitiveness. Our logistics assets include three port facilities (Murmansk Bulk Terminal, Sillamae liquid terminal and Tuapse transhipment terminal), long-term leases on cargo ships and our own rail facilities (c. 7,000 rail stock and 45 locomotives). The financial benefits that we extract from our logistics assets manifest themselves in the reduced costs of the reportable segments.
International sales
Similar to Logistics, our international sales infrastructure is not a reportable business segment. Currently it includes our fully-owned Swiss-based trader EuroChem Trading GmbH, which is responsible for global sales outside the CIS and North America; a US-based trading company, EuroChem Trading USA Corp., responsible for North American sales and; a newly set up company in Brazil is responsible for this rapidly growing market. These companies are primarily responsible for the sales of our product globally and their revenues are attributed to the Nitrogen and Phosphate segments.
| 2010 | Nitrogen | Phosphates | Distribution | Other | Intra-Group sales | External sales |
|---|---|---|---|---|---|---|
| Nitrogen fertilizers | ||||||
| Ammonia | 521 | – | 2 | 14 | (328) | 209 |
| Urea | 1,709 | – | 42 | 11 | (39) | 1,722 |
| AN | 1,710 | – | 442 | – | (440) | 1,712 |
| UAN | 680 | – | 44 | 77 | (47) | 753 |
| CAN | 140 | – | 41 | – | (38) | 142 |
| Organic synthesis products | 455 | – | – | 5 | – | 460 |
| Phosphates | ||||||
| MAP, DAP | – | 1,849 | 84 | – | (87) | 1,846 |
| NP | – | 87 | 26 | – | (25) | 88 |
| Feed phosphates group | – | 236 | – | – | – | 236 |
| NPK | 456 | 23 | 220 | 7 | (79) | 628 |
| Apatite concentrate | – | 219 | – | – | (4) | 215 |
| Iron ore concentrate | – | 6,116 | – | – | – | 6,116 |
| Baddeleyite concentrate | – | 8 | – | – | – | 8 |
| 5,671 | 8,539 | 901 | 113 | (1,088) | 14,136 | |
