The Board of Directors of PJSC PhosAgro has acknowledged the Company’s early achievement of the key objectives outlined in its Development Strategy to 2025. Additionally, the Board reviewed the results of the Company’s investment activities over the past year, which reflect significant progress across several strategic areas.
PhosAgro CEO Mikhail Rybnikov highlighted the Company’s strong investment performance: “From 2019 through 2024, we have invested more than RUB 330 billion in development, easily surpassing our target of RUB 250 billion in capital expenditures through 2025.”
These investments have enabled the early completion of several strategic goals:
- Record Production Levels: By the end of 2024, PhosAgro expects to produce over 11.7 million tonnes of finished products, surpassing its 2025 target of 11.5 million tonnes.
- Expanded Product Portfolio: The total number of fertilizer brands produced by PhosAgro reached 58 in 2024, well above the 2025 goal of 39.
- Self-Sufficiency in Key Inputs: Ammonia production is anticipated to reach nearly 2 million tonnes in 2024, exceeding the 2025 target of 1.9 million tonnes. Similarly, sulphuric acid production is expected to surpass 8.5 million tonnes, ahead of the 2025 goal of 7.8 million tonnes.
- Domestic Market Focus: Supplies to the Russian domestic market are projected to exceed 3.3 million tonnes in 2024, surpassing the 2025 goal of 3 million tonnes.
- Enhanced Distribution Capacity: PhosAgro-Region, Russia’s largest fertilizer distribution network, achieved a peak capacity of over 1 million tonnes in 2024, significantly exceeding the 2025 target of 650 thousand tonnes.
- Increased Storage Capacity: Liquid complex fertilizer storage capacity reached over 100 thousand tonnes in 2024, compared to the 2025 goal of 62 thousand tonnes.
- Network Expansion: The number of PhosAgro distribution centers across Russia grew to 37 in 2024, surpassing the 2025 goal of 35.
- Employee Satisfaction: Corporate surveys revealed employee satisfaction and loyalty metrics rose to 76% in 2024, exceeding the 2025 target of 65%.
In 2024 alone, PhosAgro invested a record RUB 75 billion in growth, completing numerous key projects:
- Increased Phosphate Rock Processing Capacity: The Cherepovets and Volkhov facilities expanded their capacity by nearly 400 thousand tonnes.
- New Products in Balakovo: The Balakovo plant began producing diammonium phosphate and increased feed monocalcium phosphate production by 100 thousand tonnes per year. The SK-20 sulphuric acid plant at Balakovo achieved design capacity, boosting sulphuric acid production by 350 thousand tonnes annually.
- Mining Expansion: Operations at the +10 m mining level at the Kirovsky mine commenced, along with underground mining in the Gakman section of the Yukspor deposit.
Projects still underway include:
- Aluminium Fluoride Production Expansion: At the Cherepovets complex, the aluminium fluoride shop is being upgraded to increase capacity from 75 thousand tonnes to 79 thousand tonnes per year. Supplies of aluminium fluoride will grow in 2025.
- Balakovo Plant Development: The third stage of development focuses on creating a flexible production system for MAP, DAP, NPS, and NPK fertilizers. Once complete, Balakovo’s production capacity will rise by nearly 1 million tonnes, bringing total fertilizer output to 3.5 million tonnes.
- New Sulphuric Acid Plant: The SK-20/1 sulphuric acid plant under construction is expected to add 750 thousand tonnes of production capacity annually when completed in late 2025.
- Energy Efficiency Projects: In Balakovo, a phosphogypsum conversion unit and an expanded power generation system (adding 187 million kWh annually) are slated for completion in 2025.
- Kirovsk Mining Development: Construction of a new mine at the Rasvumchorr Plateau deposit is progressing, with capital investments totaling around RUB 38 billion. Over RUB 33 billion will also be allocated to developing the Vostochny mine by 2035.
These initiatives will be incorporated into PhosAgro’s Development Strategy to 2030, which the Board of Directors will review in the second quarter of 2025.
The Board also approved the budget for 2025, reaffirming its commitment to long-term growth. The meeting highlighted the Company’s strong performance in occupational health and safety, with zero fatal workplace accidents recorded in 2024. Additionally, the Board approved the 2025 work plan and budget for the Internal Audit Department, as well as updates to the Company’s Statement on Transparency in accordance with the UK’s Modern Slavery Act.
PhosAgro’s achievements underscore its position as a leader in the global fertilizer market, driven by its commitment to sustainable development and operational excellence.
