Our operations and products
EuroChem is Russia’s largest mineral fertilizer producer and is a top ten agrochemical company globally by nutrient capacity. We produce nitrogen, phosphate and potash fertilizers, as well as certain organic synthesis products and iron ore.
Our corporate strategy is to become a top five global fertilizer producer by profitability and nutrient capacity. We will achieve this through acquisitions and organic growth, particularly in our potash business, while increasing our cost advantage through further vertical integration and efficiency improvements.
In 2013, we manufactured 5.0m tonnes of mineral fertilizers (by nutrient). Of this total, 2.8m tonnes are nitrogen-based and over 1.0m tonnes are phosphate-based.
Where we operate
Our production and logistics operations are in Belgium, Estonia, Lithuania, and Russia and in 2013 we started developing mining operations in Kazakhstan. Also in 2013, we announced plans to investigate production operations in China and the USA. We have core administration offices in Brazil, Russia, Switzerland and the USA and sell our products in over 100 countries through our sales centres in China, France, Germany, Greece, Italy, Mexico, Singapore, Spain and Turkey.
A company that holds business interests beneficially for Andrey Melnichenko and his family ultimately owns 92.2% of EuroChem Group SE, which owns 87.36% of EuroChem MCC. Dmitry Strezhnev, Chief Executive Officer of EuroChem MCC, is the beneficiary of the remaining 7.8% of EuroChem Group SE.
Our three main functions
The company is divided into three main functions:
- Production of nitrogen, phosphate and compound fertilizers, organic synthesis products, mineral feedstock and planned production of potash fertilizers
- Sales of our products through distributors and agricultural centres in Russia, Belarus, Ukraine, Switzerland, Germany, Belgium, the USA and Brazil
- Transport and logistics through wholly-owned rail, port and shipping assets.
Our business advantages
- Ownership of feedstock sources such as phosphates/apatite, gas and potash (planned).
- Vertical integration from feedstock through production and logistics, including repair and maintenance and construction.
- production of iron ore concentrate as a by-product of apatite extraction at Kovdorskiy (up to 5.7 MMT of iron ore annually).
- Access to competitively priced natural gas in Russia.
- planned potash production with access to Black Sea ports.
- Flexibility in production with a comprehensive and developing range, allowing us to maximise margins and respond to market demand.
We sell more than 100 types of fertilizer product, including some for which we are the sole Russian producer. All of these products are tested and certified against national and international agrochemical standards.
Our three core product groups are:
Nitrogen fertilizers – including anhydrous ammonia, urea, ammonium nitrate, calcium ammonium nitrate (CAN) and urea-ammonium nitrate solution (UAN). Nitrogen is the motor of plant growth. As the essential constituent of proteins, it is involved in all major processes of plant development and yield formation.
Phosphate fertilizers – including Monoammonium phosphate (MAP), Diammonium phosphate (DAP), Ammonium-phosphate-sulphate fertilizer (NPS) and Ordinary superphosphate. Phosphorus performs a key role in the transfer of energy. It is essential for photosynthesis and is indispensable for cell development and tissues that form a plant’s growing points.
Potassium (usually referred to as potash) – potassium activates more than 60 enzymes (the chemical substances that govern life and are vital for carbohydrate and protein synthesis). It also improves a plant’s water regime and increases tolerance to drought, frost, salinity and disease.
Our product advantages
✓ Partnerships with the world’s largest manufacturers
✓ Advanced water-soluble fertilizers
✓ Customised mixed fertilizers
✓ Direct soil application through precision technology
✓ Packaging, storage and delivery capability
✓ Global best practice in quality and production processes
✓ Market- and customer-focus
✓ Soil analysis and mapping capability
✓ Agrochemical services capability – offering yield and application advice through our network of 25 agricultural centres.
The consolidation of EuroChem Antwerpen and EuroChem Agro in 2012 marked our first cross-border integration of Western European assets into our predominantly Russian portfolio. These acquisitions have provided us with an extended speciality fertilizer product offering and a well-established global distribution platform. EuroChem is now operating in 102 countries.
Mineral raw materials
Apatite concentrate is used to make phosphate, compound fertilizers, phosphoric acid and feed phosphates. Iron ore concentrate is used to make cast iron. Baddeleyite powder is used to make refractory and abrasive materials. Aluminium fluoride is used in aluminium manufacture, glass-making, optics and tanning industries.
Acids – including phosphoric, sulphuric and nitric acids.
Organic synthesis products – including methanol, synthetic acetic acid, butanol, polyvinyl alcohol, methyl acetate, paint and varnish solvent.
Industrial gases – including gaseous and liquid argon, nitrogen, oxygen and carbon dioxide, solid carbon dioxide (dry ice).
Other products – including food-grade crystallised urea, food-grade acetic acid, commercial acetone and flotation agent (sebacic acid).
We produce a wide range of other useful materials related to our core products. These include:
Compound fertilizers – including NPK fertilizer and NPK universal.
Feed phosphates – used as effective and environmentally benign fodder supplements in animal husbandry and aviculture. They do not contain any heavy metals.