Business geography and sales market

Chemical production
Distribution
Mining
Logistics

Acron Group has assets in six countries. In 2014, the Group sold its products to 66 countries.

United States and Canada

Share in Group’s revenue: 13%

Sales volume: 847,000 t (UAN, AN, ammonia)

Features: The United States is the Group’s largest UAN sales market (75% of total sales volume in 2014).

Outlook: The Group’s stable position in the U.S. market (28% of total UAN imports in 2014) and increasing demand for liquid fertilisers allow for annual supply increases. The lifting of anti-dumping duties on AN imported to the U.S. offers an opportunity to explore a new sales market for this product.

Latin America

Share in Group’s revenue: 17%

Sales volume: 1.040 mn t (AN, urea, NPK)

Features: Brazil is a key sales market for agricultural use AN in the region (37% of the Group’s total sales). Peru, Argentina and Columbia are large consumers of industrial AN, while Brazil, Mexico and Ecuador purchase large amounts of NPK and nitrogen fertilisers.

Outlook: Maintaining high sales in Brazil (45% of total AN imports in 2014). Expansion to other countries amid constantly growing demand for nitrogen fertilisers in the region; increasing supplies of industrial AN and urea; promoting NPK.

Europe

Share in Group’s revenue: 12%

Sales volume: 697,000 t (ammonia, bulk blends, AN, urea, UAN, NPK, apatite concentrate, industrial products)

Features: The major consumers of the Group’s products in the region are Lithuania, France, Latvia and Norway. Europe is the key sales market for urea and bulk blends.

Outlook: Stable market for sales of a wide variety of products; increased shipments of UAN after antidumping duties were lifted.

Africa and Other Countries*

Share in Group’s revenue: 3%

Sales volume: 203,000 t (AN, urea, NPK)

Features: Evolving sales market for nitrogen products and NPK. Nigeria is the Group’s major consumer in this region.

Outlook: Development of agriculture provides a good foundation for further expansion of mineral fertiliser market in various African countries.

*Australia, Oceania and others

Asia**

Share in Group’s revenue: 11%

Sales volume: 581,000 t (AN, NPK, urea, bulk blends)

Features: Thailand is the largest sales market for the Group’s NPK in this region (13% of the Group’s total NPK sales volume). Stable supplies to Vietnam.

Outlook: Ramping up the Group’s sales in Thailand (29% of total NPK imports in 2014) and Vietnam. The Group promotes NPK sales in Indonesia and Myanmar.

**Excluding China

China***

Share in Group’s revenue: 21%

Sales volume: 1.181 mn t (NPK)

Features: The Group’s largest NPK sales market (42% of total NPK sales). Hongri Acron sells all of its NPK on the domestic market. The Group’s Russian production facilities account for 28% of NPK imports to China.

Outlook: China remains the key sales market for NPK, and the Group is committed to retaining its status in this market.

***Excluding sales of third-party products

CIS****

Share in Group’s revenue: 6%

Sales volume: 385,000 t (NPK, AN, ammonia, urea, industrial products)

Features: Ukraine is a large NPK sales market for the Group (8% of total NPK sales volume).

Outlook: The volatile political situation in Ukraine may cause a decrease in the Group’s sales volume in the region. Nevertheless, over the long term, demand for the Group’s products in this region will remain stable due to such factors as an extensive agricultural sector and a continued history of cooperation.

****Excluding Russia

Russia

Share in Group’s revenue: 17%

Sales volume: 1.366 mn t (AN, NPK, urea, ammonia, industrial products)

Features: Russia is the second after Brazil market for the Group’s AN (28% of total AN sales), key market for its industrial products (74%) and a large market for the Group’s NPK (10%).

Outlook: The Russian market remains a top priority. The Group is one of three largest fertiliser suppliers in Russia.

My Annual Report

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