K+S build potash plant in Canada

K+S to build potash plant in Canada

7:10 AM, 23rd April 2013
K+S to build potash plant in Canada

MOOSE JAW, CANADA: K+S is committed to continuing the construction of the new potash plant in the Canadian province of Saskatchewan. This includes the basic engineering and cost analysis of the major subprojects which is now at an advanced stage. The Supervisory Board which is always promptly and closely involved in all phases of the project has approved the decision of the Board of Executive Directors to increase the capex budget for the new plant to CAD4.1 billion (about 3 billion).

With the expected commissioning in summer 2016 the company still projects to reach the two-million-tonne-mark of production capacity at the new location at the end of 2017. The gradual extension of the annual capacity to 2.86 million tonne of potash products will occur afterwards. So far the company assumed a production start at the end of 2015. The annual production capacity of the existing K+S sites is up to 7.5 million tonne of potash and magnesium products.

“The additional findings strengthen the predictability, transparency and controlling as well as our major project overall. In the future, the new plant will be the main source for distributing to the emerging regions in Asia, South America and as well to North America. Legacy strengthens the K+S Group’s competitiveness and opens attractive prospects for many decades,” said Norbert Steiner, Chairman of the Executive Board of Directors, K+S.

“Legacy is an important part of the future of K+S. Taking all data of the profitability calculation into account the project is economically attractive and still fulfills the requirement of the Group, to earn a 15 per cent premium on the cost of capital before taxes. The K+S Group has a solid balance sheet. The financing will be ensured by existing liquidity, future cash flows and new debt. The dividend policy of the company will remain unaffected by the decision to increase the capital expenditure,” added Steiner.

© WOC News

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