Russian company Phosagro, one of the world’s leading phosphate-based fertilizer producers, has merged two of its subsidiaries Balakovo “Mineral Fertilizers” and Apatit.
The merger will help to optimise management, streamline accounts, and lower costs. After evaluating the consolidation, Phosagro, Europe’s largest phosphate-fertilizer maker, may unify its remaining production assets into a single entity in a bid to increase shareholder returns.
However, the move may entail layoffs though the company’s CEO Andrey Guryev say there is no fixed job cuts target. Phosagro, which is listed on the MSCI Russia index, seeks to attract more investors.
The company mulls borrowing about $200 million for the Phosagro-Cherepovets buyout. It is planning to build an ammonia complex in the northwest of the country. The complex will be Phosagro’s major facility and will be able to produce 760,000 metric tons of ammonia per annually.
The company focuses on the production of phosphate-based fertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of not less than 39%), as well as ammonia and nitrogen-based fertilizers.
It is the largest producer of high-grade phosphate rock worldwide and the second largest MAP/DAP producer in the world (excluding China).
