Business model

Higher efficiency with a vertically integrated business model

Acron Group’s business model is based on an efficient chain of interrelated business segments – mining, production, logistics and distribution. Vertical integration allows controlling the whole process of generating added value and delivering business efficiency and competitive advantage.

BUSINESS SEGMENT     
Mining key segment Chemical Production key segment Logisticsauxiliary segmentDistribution auxiliary segment
STRUCTURE     
Phosphorus
  • NWPC, Oleniy Ruchey mine (Russia)
Potash
  • VPC, Talitsky mine (Russia)
  • North Atlantic Potash Inc. (NAP), potash permits in Saskatchewan (Canada)
Nitrogen and complex mineral fertilisers Industrial products
  • Acron (Russia)
  • Dorogobuzh (Russia)
  • Hongri Acron (China)
Sea port terminals
  • AS DBT (Estonia)
  • AS BCT (Estonia)
  • Andrex LLC (Russia)
Railway operator
  • Acron-Trans (Russia)
Russia
  • CJSC Agronova
China
  • Yong Sheng Feng
USA
  • Agronova International Inc.
Switzerland
  • Agronova Europe AG
KPI     
100% Сomplete phosphate independence

726.1 mn t Balance sylvinite reserves (categories A+B+C1)

6.3 mn t Output of Key Products 2.9 mn t Transshipment by the Group’s Port Facilities6.3 mn t Sales of Key Products
DESCRIPTION     
This is the Group’s most dynamically developing business segment. The Group is implementing multiple greenfield projects and allocates a significant portion of its capital investments to this segment.

The segment focuses on providing the Group’s chemical production facilities with feedstock, enhancing the Group’s competitive edge and increase sales.
Maintaining high performance at existing production facilities and boosting ammonia and nitrogen fertiliser output is the main task in developing this segment. The Group’s logistics infrastructure helps Russian production facilities operate smoothly and efficiently. Handling cargo for third-party producers improves the profitability of this segment.The key objective of Acron’s distribution network is to strengthen the Group’s position in key markets and make advances in promising new markets.
Reducing operating costs Vertical integration allows controlling all stages of the production process and ensures its efficiency
Broad product portfolio We are focused on manufacturing an extensive range of high added-value products, and thereby adjust to the market needs and maximise profit
Market diversification We continually evaluate opportunities in the fastest-growing and larger markets
Sustainable
value
creation

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