EuroChem’s Strategy

[ 20.07.09 ]

EuroChem has been growing for seven years, and has reached the level of the world’s leading mineral fertilizer manufacturers. Today, EuroChem is Russia’s largest producer of mineral fertilizers, one of the top three in Europe, and one of the top ten industry leaders worldwide. EuroChem is the only chemical company in Russia with its own mining and processing companies, logistics operations, and a global sales network. We strive to continue our development and growth: EuroChem’s 2009-2013 development strategy forecasts investments of ca. $3 billion in production development and construction of new facilities.

EuroChem’s key strategic goals are:

Presence in three segments on the mineral fertilizer market: At present, EuroChem manufactures products of two key mineral fertilizer groups: nitrogen and phosphorous. In 2013 the company will enter the potash fertilizer segment; to achieve this, the company has obtained licenses to mine potassium salts at two major deposits in the Volgograd and Perm regions.

Increased output and improved efficiency: EuroChem is working to grow its production capacity. Today, the company is one of the world’s top ten producers of mineral fertilizers, but our goal is to reach the top five in the industry in terms of production volumes and financial efficiency. The company continues to optimize its value chain by securing access to inexpensive resources, managing the product portfolio, and increasing production efficiency.

Vertical integration and development of resource base: EuroChem makes continual efforts to expand its resource base, both in the phosphorous and potash segments. The company supplies its phosphorous factories with raw materials from the Kovdor deposit, and is currently in the process of obtaining licenses to develop phosphate deposits in Kazakhstan. EuroChem is also expanding its own logistics infrastructure, as well as a distribution network both in Russia and abroad.

A solid presence on the domestic market: Over the past several years, EuroChem has built Russia’s best mineral fertilizer distribution system. The company strives not only to grow market share; our comprehensive agrochemical consulting services are aimed to help customers improve yield. Over the next five years, EuroChem plans to double the number of its distribution centers in Russia and the CIS.

Long-term sustainability: EuroChem’s financial sustainability has been verified by independent rating agencies: in 2008, both Fitch and Standard & Poor’s increased EuroChem’s credit rating to BB; in 2009 Standard & Poor’s has confirmed the rating.

Social Responsibility: EuroChem aims to conform to best industry practices on labor safety, accident prevention, and environmental conservation. The company plays an active role in socioeconomic development of the regions where EuroChem operates.