PhosAgro’s Board of Directors Notes Early Achievement of Key Goals Outlined in Development Strategy to 2025
Moscow – The Board of Directors of PJSC PhosAgro (Moscow Exchange, LSE: PHOR) recognized the Company’s early achievement of the key objectives outlined in its Development Strategy to 2025 and reviewed the results of the Company’s investment activities over the past year.
PhosAgro CEO Mikhail Rybnikov said: “From 2019 through 2024, we have invested more than RUB 330 billion in development, easily surpassing our target of RUB 250 billion in capex through 2025.
“As a result, we were able to achieve the following key goals outlined in our development strategy to 2025 ahead of schedule:
“In 2024, a record RUB 75 billion was invested in the Company’s growth. We completed the implementation of a number of key investment projects outlined in our 2025 Strategy. In Cherepovets and Volkhov, our capacity for processing phosphate rock increased by a total of nearly 400 thousand tonnes. Our plant in Balakovo began producing diammonium phosphate and completed a project to increase the production of feed monocalcium phosphate by 100 thousand tonnes per year. The facility’s SK-20 sulphuric acid plant reached design capacity, ramping up the production of sulphuric acid by 350 thousand tonnes per year. As a result, production of sulphuric acid at the site rose 13% to nearly 3 million tonnes per year. In 2024, we began operations at the +10 m mining level at our Kirovsky mine. We are also starting underground mining in the Gakman section of the Kirovsky mine’s Yukspor deposit.
“Implementation of a project aimed at increasing the capacity of the aluminium fluoride shop at our Cherepovets complex from its current 75 thousand tonnes to 79 thousand tonnes per year is ongoing. Supplies of aluminium fluoride, which is used as an electrolyte component in the production of aluminium, will increase in 2025. The third stage in the development of our production plant in Balakovo is in progress, focusing on the creation of a flexible system for producing MAP, DAP, NPS and NPK fertilizers and increasing gross production volumes. Upon completion of the project, production at our Balakovo plant will increase by nearly 1 million tonnes, bringing total output of fertilizers widely used by Russian farmers to 3.5 million tonnes. The construction of our SK-20/1 sulphuric acid plant is well under way. Set for completion in the second half of 2025, the plant will increase sulphuric acid production by 750 thousand tonnes per year. Next year, we also plan to complete the construction of a phosphogypsum conversion unit in Balakovo and to finalize an initiative aimed at expanding the plant’s in-house power generation capacity by 50%, or 187 million kWh per year.
“We are making progress in Kirovsk on the construction of a new mine for the development of the Rasvumchorr Plateau deposit. Total capital investments in the project will amount to around RUB 38 billion. We plan to allocate a total of more than RUB 33 billion to 2035 in the development of the Vostochny mine. These projects will be included in our Development Strategy to 2030, which will be submitted to the Board of Directors for review in the second quarter of 2025.”
During the meeting, the Board of Directors approved the budget for the upcoming year, which reaffirms the Company’s commitment to its long-term development strategy. In addition, information was shared during the meeting on occupational health and industrial safety at PhosAgro Group companies. It was noted that there were zero fatal workplace accidents at the Company in 2024.
The Board of Directors approved the work plan and budget for the Company’s Internal Audit Department for 2025 as well as a new version of the Statement on Transparency concerning the UK’s Modern Slavery Act.
PhosAgro CEO Mikhail Rybnikov said: “From 2019 through 2024, we have invested more than RUB 330 billion in development, easily surpassing our target of RUB 250 billion in capex through 2025.
“As a result, we were able to achieve the following key goals outlined in our development strategy to 2025 ahead of schedule:
- We expect to produce a record of over 11.7 million tonnes of finished products by the end of 2024 (versus our 2025 strategic goal of 11.5 million tonnes).
- The total number of fertilizer brands produced by PhosAgro reached 58 in 2024 (versus our 2025 strategic goal of 39).
- We ensure a high degree of self-sufficiency. Our ammonia production for 2024 is expected to reach almost 2 million tonnes (versus our 2025 strategic goal of 1.9 million tonnes), while sulphuric acid production is expected to exceed 8.5 million tonnes (versus our 2025 strategic goal of around 7.8 million tonnes).
- Supplies to the domestic market, our strategic priority, are expected to exceed 3.3 million tonnes in 2024 (versus our 2025 strategic goal of 3 million tonnes).
- PhosAgro-Region, Russia’s largest distribution network, had a peak capacity of over 1 million tonnes in 2024 (versus our 2025 strategic goal of 650 thousand tonnes).
- We increased our storage capacity for liquid complex fertilizers to over 100 thousand tonnes in 2024 (versus our 2025 strategic goal of 62 thousand tonnes).
- We expanded our network of PhosAgro distribution centres across Russia to 37 in 2024 (versus our 2025 strategic goal of 35).
- Our employee satisfaction and loyalty metrics have been steadily rising, reaching 76% in 2024 based on corporate surveys (versus our 2025 strategic goal of 65%).
“In 2024, a record RUB 75 billion was invested in the Company’s growth. We completed the implementation of a number of key investment projects outlined in our 2025 Strategy. In Cherepovets and Volkhov, our capacity for processing phosphate rock increased by a total of nearly 400 thousand tonnes. Our plant in Balakovo began producing diammonium phosphate and completed a project to increase the production of feed monocalcium phosphate by 100 thousand tonnes per year. The facility’s SK-20 sulphuric acid plant reached design capacity, ramping up the production of sulphuric acid by 350 thousand tonnes per year. As a result, production of sulphuric acid at the site rose 13% to nearly 3 million tonnes per year. In 2024, we began operations at the +10 m mining level at our Kirovsky mine. We are also starting underground mining in the Gakman section of the Kirovsky mine’s Yukspor deposit.
“Implementation of a project aimed at increasing the capacity of the aluminium fluoride shop at our Cherepovets complex from its current 75 thousand tonnes to 79 thousand tonnes per year is ongoing. Supplies of aluminium fluoride, which is used as an electrolyte component in the production of aluminium, will increase in 2025. The third stage in the development of our production plant in Balakovo is in progress, focusing on the creation of a flexible system for producing MAP, DAP, NPS and NPK fertilizers and increasing gross production volumes. Upon completion of the project, production at our Balakovo plant will increase by nearly 1 million tonnes, bringing total output of fertilizers widely used by Russian farmers to 3.5 million tonnes. The construction of our SK-20/1 sulphuric acid plant is well under way. Set for completion in the second half of 2025, the plant will increase sulphuric acid production by 750 thousand tonnes per year. Next year, we also plan to complete the construction of a phosphogypsum conversion unit in Balakovo and to finalize an initiative aimed at expanding the plant’s in-house power generation capacity by 50%, or 187 million kWh per year.
“We are making progress in Kirovsk on the construction of a new mine for the development of the Rasvumchorr Plateau deposit. Total capital investments in the project will amount to around RUB 38 billion. We plan to allocate a total of more than RUB 33 billion to 2035 in the development of the Vostochny mine. These projects will be included in our Development Strategy to 2030, which will be submitted to the Board of Directors for review in the second quarter of 2025.”
During the meeting, the Board of Directors approved the budget for the upcoming year, which reaffirms the Company’s commitment to its long-term development strategy. In addition, information was shared during the meeting on occupational health and industrial safety at PhosAgro Group companies. It was noted that there were zero fatal workplace accidents at the Company in 2024.
The Board of Directors approved the work plan and budget for the Company’s Internal Audit Department for 2025 as well as a new version of the Statement on Transparency concerning the UK’s Modern Slavery Act.