PhosAgro Achieves Record-Breaking Agrochemical Production in 2023

PhosAgro Group Achieves Record Agrochemical Production in 2023

During a recent meeting of the Company’s Management Board, PhosAgro Group proudly announced a historic milestone in its agrochemical production, reaching an unprecedented 11.3 million tonnes in 2023, as revealed by the Company’s CEO, Mikhail Rybnikov.

This remarkable increase in production played a pivotal role in the decision to enhance the wages of all PhosAgro Group employees, effective from February 1, 2024, with a further 15% increment. This wage adjustment supplements the substantial 60% rise in average wages witnessed from 2021 through 2023.

Highlights of FY 2023

In fiscal year 2023, mineral fertilizer production surged by 2.1% compared to the previous year, totaling 11 million tonnes, with an additional 0.3 million tonnes of other agrochemicals manufactured.

The notable growth was primarily fueled by an 8.4% increase in DAP/MAP production, exceeding 4.5 million tonnes, a 4.4% rise in ammonium nitrate production to 723 thousand tonnes, and a 1.6% uptick in urea production to 1.7 million tonnes.

Key feedstock production also witnessed a 2.1% year-on-year increase in FY 2023, largely attributed to a 4.6% surge in phosphoric acid production and a 2.5% rise in sulphuric acid production.

Reflecting on the record-setting achievements of the previous year, PhosAgro’s CEO emphasized the concerted efforts of management and employees in executing the company’s long-term development strategy, aimed at augmenting the production of high-quality fertilizers and vital feedstocks.

Organic Growth and Sustainability

The CEO underscored the efficacy of organic growth strategies, emphasizing the gradual modernization of production facilities using cutting-edge technologies, closer integration with feedstock sources, and a steadfast commitment to sustainability. These efforts have not only solidified PhosAgro’s position as the leading supplier of fertilizers in the Russian market but have also bolstered its competitive edge in global mineral fertilizer markets.

In 2023, PhosAgro achieved a commercial output milestone of 11.3 million tonnes, encompassing over 11 million tonnes of mineral fertilizers along with feed and industrial phosphates. Despite stagnant phosphate rock production, the company processed over 9 million tonnes for the first time.

Phosphate-Based Fertilizers and Production Enhancements

PhosAgro recorded a 2.0% year-on-year increase in phosphate-based fertilizer production in 2023, with DAP/MAP output reaching a record high of over 4.5 million tonnes, marking an 8.4% surge. Noteworthy was the 12.9% increase in MAP production, partly attributable to the new production complex in Volkhov, developed under the comprehensive long-term development program.

To support the heightened production of phosphate-based fertilizers, PhosAgro augmented phosphoric and sulphuric acid output while maintaining high ammonia production levels.

Phosphoric acid production surged by 4.6% in FY 2023, exceeding 3.3 million tonnes, driven by earlier production unit upgrades and enhanced operational efficiency. Additionally, sulphuric acid production increased by 2.5% year-on-year, surpassing 8.1 million tonnes, attributed to improved operational efficiency and the launch of a new production unit in Balakovo at the end of 2023.

Looking forward, PhosAgro remains committed to sustainable growth and innovation, positioning itself as a leader in the global agrochemical industry.

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