K+S acquires Magpower; expands presence in Asia

K+S acquires Magpower; expands presence in Asia

9:34 AM, 15th July 2016
K+S acquires Magpower; expands presence in Asia

KASSEL, GERMANY: K+S Group said that it is acquiring the activities of Huludao Magpower Fertilizers Co Ltd (Magpower), the Chinese producer of magnesium sulphate fertilizers, expanding presence in Asia. The closing of the transaction is anticipated for the end of this year.

Magpower is one of the largest Chinese producers of synthetic magnesium sulphate (SMS), which is used as a fertilizer for oil palms, soybeans and sugar cane as well as for industrial applications.

K+S acquire a modern production site with an attractive cost structure in Huludao City in the northeast Chinese province of Liaoning. The site currently has a capacity of 90,000 tonnes and employs about 50 people. The capacity of the production site could be doubled to 180,000 tonnes in the foreseeable future.

To date, K+S has only produced magnesium sulphate fertilizers (including ESTA Kieserite) from natural deposits at several German sites in Hesse and Lower Saxony. The products produced in Huludao will complement the K+S product range through the addition of highly effective, water soluble magnesium sulphate. This kind of magnesium sulphate has a positive effect on root development, water absorption, yields and plant quality parameters.

“In line with our management agenda, we are bolstering our competitive position in the specialties area by means of this acquisition and can therefore better tap into the growth markets of South-East Asia,” said Norbert Steiner, chairman of the board of executive directors of K+S.

“We see great sales potential for magnesium sulphate products to the agricultural sectors in China and South-East Asia which we can’t service adequately from our German sites,” added Steiner.

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