Eurochem, a representative who chose not to be named, shared insights on the company's growing presence in China. "Through our distribution network, we sell over 200,000 tons of specialized NPK fertilizers annually in the Chinese market," he said. "This new plant represents a strategic expansion for us and is aimed at boosting our market share in the dedicated fertilizer segment." The exact investment amount for the project remains undisclosed, but both parties will share profits based on their respective capital contributions. Eurochem has also left the door open for potential third-party partners to join the venture.
Konstantin Yumin, an analyst from Raiffeisenbank in Austria, estimates the project’s total cost to be between $50 million and $60 million. He noted that the Migao Group, a major player in China’s potash fertilizer industry, could become a key distribution partner for Eurochem. Additionally, the group may supply raw materials to other facilities under the Migao umbrella. This joint venture in Yunnan marks the second major project initiated by Eurochem in China within a month. Earlier this July, the company announced plans to invest approximately $1.5 billion over the next five years to build a nitrogen and urea production facility in the U.S.
Before Russia approved Sinopec’s bid for a Russian rubber giant, Eurochem had already made significant international investments. In 2008, the company announced a large-scale offshore project, planning to invest $2.5 billion in phosphorite mining in Kazakhstan by 2015. It also intended to construct an ore refinery and three fertilizer plants in the country. However, the project remained unimplemented until 2013, as the Kazakh government took longer than expected to issue the necessary licenses.
Ivan Andriyevsky, Managing Partner at 2K Audit (2KAudit), stated that it is still too early to fully assess the feasibility of Eurochem’s global investment strategy. While demand for inorganic fertilizers has declined in the U.S., it continues to grow in Southeast Asia. Despite these regional shifts, Andriyevsky added: "Given the company’s current financial performance, its foreign investment plans so far appear realistic and well-structured."Copper Tube,Refrigeration Copper Tube,Air Conditioning Radiator,Copper Tube Fittings
Suzhou Green New Material Technology Co., Ltd. , https://www.szgreenvip.com