MOSCOW, Aug 3 (PRIME) -- Russian fertilizer producer EuroChem has signed an agreement to buy phosphate project Serra do Salitre in Brazil for U.S. $410 million, EuroChem said in a statement late on Monday.
"EuroChem Group AG, a leading global fertilizer company, announces the signing of an agreement to acquire the Serra do Salitre phosphate project in Brazil, strengthening the group’s production and distribution capabilities in one of the world’s most important crop nutrient markets," the company said.
The company expects that the acquisition will raise the production capacity of the group by 1 million tonnes. The facility can start producing fertilizers in 2023 and reach full capacity in 2024.
The deal is subject to regulatory approval in Brazil.
Brazil is one of the world’s biggest fertilizer markets, and phosphates are considered to be one of the three primary nutrients, along with nitrogen and potassium, that plants require for healthy growth. Due to nature of the crop mix in Brazil – 44% of which is soya – Brazilian demand for phosphate-based fertilizers is higher than in other regions, with half of consumed phosphate fertilizers within the country covered by imports.
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