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Acron and Smolensk Region Sign Agreement on Development of a New Complex Mineral Fertiliser Facility

Total project investments to reach RUB 25 billion

Acron and the Smolensk regional administration signed an agreement at Russia’s leading agricultural forum, the Golden Autumn exhibition, to develop a new production complex at the Dorogobuzh industrial site (part of Acron Group). The event was attended by Russian Prime Minister Dmitry Medvedev. The new facility will have production units for sulphuric acid, wet-process phosphoric acid and MAP and DAP, and complex NPK fertilisers, including blends with different additives. The agreement was signed by Smolensk regional governor Alexey Ostrovsky and Acron Group President Vladimir Kunitsky.

The goal of the RUB 20 billion project is to diversify production, increase output and expand the assortment of complex phosphoric fertilisers using apatite concentrate from the Oleniy Ruchey deposit (JSC NWPC, part of Acron Group). The new facility will be able to process 600,000 tpa of concentrate, with estimated annual output of 0.5 to 1.0 million tpa, depending on the product. Construction will start this year and run through 2021.

Dorogobuzh’s existing ammonia unit will be upgraded in order to provide the additional ammonia required for the new facility. The ammonia unit’s capacity will be increased from the current 1,743 to 2,100 tonnes per day at an additional cost of RUB 5 billion.
Smolensk regional governor Ostrovsky said: "In the National Rating of the Investment Climate, which was presented at the St. Petersburg International Economic Forum in June 2017, Smolensk region topped the list of Russian regions with the best dynamics, and climbed 49 positions. The implementation of a new large-scale investment project in the Priority Social and Economic Development Area in Dorogobuzh, the first in the Central Federal District, will create up to 400 new jobs and significantly increase the region’s tax base in future".

Chairman of Acron’s Board of Directors Alexander Popov underscored the Company’s consistent implementation of its investment programme: “Acron invests up to 80% of its income in the development of production sites. Expanding the complex fertiliser production facility at the Dorogobuzh site will allow us to manufacture the most popular products, including products in demand with domestic farmers".

The project’s chief designer is LLC Novgorod GIAP (part of Acron Group), and the licensor is SNC-Lavalin, a Canadian company. SNC-Lavalin President of Global Mining and Metallurgy José J. Suarez said: "We are looking forward to supporting the project at all stages of its implementation, including the launch of production. We are confident that working with one of the leaders of the mineral fertiliser industry in Russia will be fruitful for Smolensk region”.