In shape for sustainable growth
“As we enter our tenth year, EuroChem is nearing a major milestone in its development. We already have a successful track record for responsible and sustainable growth, having reached the top ten position among fertilizer producers globally. Today we are on track with the construction of our potash mines, which we believe will launch EuroChem into a top five position among producers globally by nutrient capacity and profitability.”
Andrey Melnichenko
Chairman of the Board of Directors
The story so far
EuroChem turns ten years old in 2011! We have achieved leading positions in our industry by production capacity and responsible investments, we have strong credit ratings from Fitch and S&P among privately-owned Russian corporates and we have instituted a best-practice corporate governance system and an award-wining CSR program. And we’re only getting started…
USD 530m
EuroChem’s investments into new products, greater efficiency and environmental protection in 2010.
Meeting global demands
As 2010 has shown, it takes just one season of unfortunate climatic events in some agricultural markets coupled with a year of underfertilization and an empty fertilizer supply chain to bring the specter of food insecurity back onto the global agenda. More than ever, the world needs more food at affordable prices, and EuroChem is responding to the challenge by increasing production by 4.3%, increasing efficiency and investing in new capacity.
Delivering on growth
EuroChem’s strategy is about growth and efficiency. We continued to deliver on our goals in 2010, with the launch of two new granulated urea lines and further advancements on our new melamine line (both unique in Russia), and the start of active shaft sinking at the Gremyachinskoe potash deposit.
Our nitrogen story
EuroChem has a strong position domestically and is a globally competitive producer thanks to relatively low natural gas costs, efficiency, product flexibility and comfortable logistics. Our competitive position is enhanced by vertical integration through the production, sales, logistics and distribution chain.
+70%
Estimated increase needed in global agricultural production to feed the world’s population in 2050.
Our phosphates story
EuroChem’s phosphate operations are vertically integrated, starting from apatite mining operations to distribution and transhipment facilities for finished product from EuroChem’s phosphate plants. We are further enhancing our position by investing in increased capacity, greater efficiency and higher quality production.
Investment strategy
Our investment strategy is designed to help EuroChem grow faster than the market through investments in potash, while maintaining or increasing the competitiveness of our existing nitrogen and phosphate operations through higher value-adding products, vertical integration and efficiency gains. In addition, we have a defined approach for non-organic growth.
Our potash story
We achieved important milestones in 2010 with the start of active shaft sinking at our Gremyachinskoe potash deposit. This top-priority project remains on track to begin production by the end of 2013, and we expect to be one of the lowest-cost potash producers in the world.
8.0 MMT p.a.
Planned capacity for Gremyachinskoe and Verkhnekamskoe potash deposits upon completion of both project phases at both deposits.
Sustainability at the core
Sustainability is at the core of EuroChem’s strategy. We recognize that capital investments coupled with financial stability and responsible attitudes to health, safety and environmental issues underpin EuroChem’s long-term profitability and sustainability.
