The long-term strategic objective of company PhosAgro is preservation of leading positions in the phosphorous-containing fertilizer market

The objectives, such as overcoming of depression, change-over to stable operation of all enterprises at full capacity, set out at the down of the company’s formation were actually achieved in full. All synergistic results obtained after the amalgamation of enterprises including sale, logistics, supply are implemented at present in full scope.

The strategic goal of middle-term outlook is the development of the domestic fertilizer market. Its achievement requires heavy financial and organizational investments every year, however, its achievement will finally stabilize operation not only of the company’s enterprises but that of the entire fertilizer producing industry as well.

According to the results of 2004, the company supplied approximately 1.1 million tons of phosphorous-containing fertilizers or 27% of their production volume to the domestic market. While company “PhosAgro” is the absolute leader of the domestic market by this indication, the company’s specialists are positive that the optimal ratio between the export supply and domestic sales is 50:50. It is this ratio which permits the enterprises to resolve the contradiction existing between the continuous nature of production and seasonality of the demand.

To solve this issue, company “PhosAgro” worked out the Program of Increased Supply of Fertilizers to the Domestic Market which makes provisions for increase of storing capacities up to 700-800 thousand tons of one-time storage and for transportation of fertilizers to regional warehouses.

Sizeable investments made in creation and development of in-house regional sales network permit company “PhosAgro” at present to use the storage premises with the capacity of 400 thousand tons of one-time storage. Many independent producers of fertilizers and even major vertically-integrated companies prefer to use just the “PhosAgro-Region” network to sell their products in Russia.

Implementation of the Program of Complex Treatment of Apatite-Nepheline Ores is also a goal of the middle-term outlook. The program makes provisions for implementation of a number of large-scale investment projects in the North-Western Federal Region including the construction of an enterprise on complex treatment of nepheline concentrate as well as the increase of usage of grothite, aegirite and titaniferous magnetite concentrates.

The short-term goal of the current stage is the completion of modernization of production works at all enterprises on the threshold of joining the WTO by Russia. At present a large-scale technological modernization awaits OAO “Cherepovetsky “Azot” which passed under the control of ZAO “PhosAgro AG” comparatively not long ago.