Group EuroChem announced the purchase of 50% minus 1 share of the plant of the Spanish Hispalense de Liquidos. The plant produces complex fertilizers with nitrogen, phosphorus and potassium (NPK). EuroChem expects to expand the range of premium fertilizers, said its CEO Dmitry Strezhnev. This will be achieved through access to production facilities, technical know-how, logistics infrastructure and the end consumer in Spain, said the representative of “EuroChem”. The asset was sold to the trading unit of EuroChem Group called EuroChem Trading GmbH. Hispalense de Liquidos will be able to sell EuroChem products in Spain to promote the technology of production of liquid fertilizers in other countries, said its President Juan Romero. (in 2016 EuroChem sold 20.9 million tonnes of fertilizers)
The Spanish company owns storage facilities and equipment for the production of liquid NPK blends in Seville with direct access to the river port. Its production capacity is up to 1,500 tons per day. Warehouse facilities can accommodate up to 21,000 tons of liquid and bulk materials.
Asset is quite small: its total cost is less than 100 million euros, says Raiffeisenbank analyst Konstantin Yuminov. According to the analyst of “Finam” Alexey Kalachev, the value of the asset is even smaller – from 6 million to 10 million euros, i.e. EuroChem could pay for their share of 3-5 million euros. The main goal of “EuroChem” in this transaction was most likely to get convenient and easy logistics and access to direct deliveries of products for the Spanish farmers, said Mr. Yuminov.