Complex fertilisers

Operating Results

  • The Group produced a total of 2.531 mn t of complex fertilisers in 2014 (down 3% year-on-year).
  • In 2014, NWPC provided the Group’s Russian facilities with all the apatite concentrate they needed.

Development Plans

  • Develop new NPK brands.
  • The Group will provide its own potash feedstock once the Talitsky mine is commissioned.

Key Trends in the Complex Fertiliser Market in 2014

  • In 2014, the NPK market recovered from a downdraft in the second half of 2013 as prices recovered on the nitrogen, phosphate and potassium markets.
  • The NPK premium remained high against basic nitrogen, phosphate and potash fertilisers.

For more details see Fertiliser Market Overview

2014 Operating Results
(‘000 t)

  NPK Bulk Blends Complex Fertilisers, total
Output
Acron (Veliky Novgorod) 1 187 – 1,187
Dorogobuzh 540 88 628
Hongri Acron 716 – 716
Total output 2,443 88 2,531
Including in-house consumption 36 36
Commercial output, total 2,407 88 2,495
YOY -3% -11% -3%
Sales* 2,432 89 2,520

*Sales of own products (excluding trading operations).

Acron (Veliky Novgorod)

In 2014, the Acron facility in Veliky Novgorod produced 1.187 mn t of NPK in physical weight, a record high result in Acron history. To satisfy the market in 2014, Acron produced 120,000 t of NPK 19-9-19 and 25-9-9, in addition to NPK 16-16-16 (up 36,000 t or 3.1% year-on-year).

This record NPK output was achieved through sustainable operation of production units with increased load, overhauls performed on a tight schedule and stable raw material supply.

In the reporting year, all Acron’s needs in apatite concentrate were covered by NWPC, the subsidiary that built and operates the Oleniy Ruchey apatite-nepheline ore mine.

Dorogobuzh

NPK output was down 91,000 t (14%) to 540,000 t due to a long-term scheduled overhaul of the ammonia unit in the reporting year. Dorogobuzh uses NPK and AN to produce dry blended fertilisers. In 2014, 36,000 t of NPK (6% of total output) were used for these purposes.

In 2014, the design documentation for an inert material (dolomite) preparation and dispensing unit was completed. Construction and installation is underway. Introduction of dolomite will provide greater flexibility of nutrient content control and improve the product’s competitive edge. Launch of the unit is scheduled for 2015.

All of Dorogobuzh’s apatite concentrate was supplied by NWPC in the reporting year.

Hongri Acron

In 2014, NPK output was down 2%, from 732,000 t to 716,000 t. In the reporting year, the Chinese government tightened environmental regulations and introduced more stringent emissions standards for the chemical, coal and processing industries. Emission rates were reduced considerably. Very little lead time was given to comply with the new standards. In order to avoid potential violations of the new emission standards, Hongri Acron extended the term of its overhaul, which affected output. Complex fertiliser sales dropped 6% to 716,000 t.

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