MOSCOW, December 09. /ITAR-TASS/. Uralkali Trading SA, part of one of the largest potash producer Uralkali (20% of world output), announced a potash fertilizer deal with the Federal Land Development Authority of Malaysia (FELDA), Uralkali’s news release goes.
The joint venture will supply potassium chloride to plantations in Malaysia and other countries and will start operating from January 1.
According to FELDA report, Uralkali and FELDA will have equal shares of the authorized capital, and the agreement has been signed for five years with the possibility of prolongation.
Uralkali’s acting chief executive Viktor Belyakov said this JV was a step to continue developing the sales network in Southeast Asia, “a strategically important region” for the company. As Southeast Asian countries placed an emphasis on expanding agricultural production, such JVs were “a good opportunity to fulfill customers’ long-term goals and suppliers of productivity boosting fertilizers, to improve food security in the region and, accordingly, increase consumption of fertilizers,” he added.
Urakali declined to name supposed volumes of JV sales.
On July 30, Uralkali announced it ceased exports transactions via Belarusian Potash Company (BPC) and defined its own trader Uralkali Trading (Switzerland) as its only export channel.
Uralklai and Belaruskali had been selling their products solely via BPC for eight years. According to Uralkali, BPC made up over 40% of the world market of potash fertilizers.
Following a divorce from BPC, Uralkali announced plans to increase production and sales of potassium chloride from 9.1 million tonnes in 2012 to 10.5 million tonnes in 2013, 13 million tonnes in 2014 and 14 million tonnes in 2015, primarily boosting supplies to China, India, and Brazil.