Phosagro S Regulatory News (PHOR)

PhosAgro Completes First Stage of Investment Project for Volkhov Production Site

Volkhov (Leningrad region) - The first stage of the investment project for the development of PhosAgro's Volkhov site has been completed with the launch of a new MAP production facility with a capacity of 231 thousand tonnes per year and the production of the first pilot batch of MAP.

The RUB 28 billion investment project was launched in March 2019 and is due to be completed by 2023. In the first stage, the MAP production line was put into trial operation. This consists of three facilities: liquid ammonia storage with a capacity of 490 tonnes, a MAP production line with a nameplate capacity of 231 thousand tonnes per year and a finished product warehouse with a capacity of 15 thousand tonnes. At the second stage of the investment project, mineral fertilizer production site No. 2 will be upgraded and pivoted to MAP production, which, together with other upgrades, will enable PhosAgro to increase total fertilizer production capacity at the site to 774 thousand tonnes per year.

Once the investment project is fully completed, an entirely new production complex will be created on the site of the old plant, which was built in 1932, and the total MAP production capacity will reach 870 thousand tonnes per year using best available technologies. The new production facilities will create more than 200 jobs for highly qualified specialists.

"Today we have witnessed the completion of the first stage of the investment project for the development of the Volkhov industrial complex. The launch of MAP production and the production of the first batch of this high-quality mineral fertilizer is an indicator that we have broken through a new frontier. Even external factors, such as the coronavirus pandemic, could not divert us from the course we set. All the planned work is being carried out on schedule, and I am confident that the investment project will be fully implemented in 2023. The investment project was among the first of Russia's investments protection and promotion agreements (IPPAs), indicating its importance not only for PhosAgro, but also for the entire mineral fertilizer industry. The agreement was signed at the end of last year by the Ministry of Economic Development of the Russian Federation, the Government of the Leningrad region and PhosAgro. I am sure that the development of the Volkhov industrial complex will create a multiplier effect for the economy of the Leningrad region. Additional tax revenues to the budget within five years after the plant reaches full capacity, that is, in the period from 2023 to 2027, will amount to more than RUB 3.5 billion," said Andrey Guryev, CEO of PhosAgro, during the official ceremony marking the launch of MAP production.

About us

PhosAgro (www.phosagro.ru) is one of the world's leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of 39% and higher. PhosAgro's environmentally friendly fertilizers stand out for their high efficiency, and they do not lead to the contamination of soils with heavy metals.

The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of high-grade phosphate rock with a P2O5 content of 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia's only producer of nepheline concentrate (according to the RAFP).

PhosAgro's main products include phosphate rock, more than 50 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in over 100 countries spanning all of the world's inhabited continents. The Company's priority markets outside of Russia and the CIS are Latin America, Europe and Asia.

PhosAgro's shares are traded on the Moscow Exchange, and global depositary receipts (GDRs) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.

More information about PhosAgro can be found on the website: www.phosagro.ru.