Toronto-Migao Corp., a producer of specialty potash fertilizers for the Chinese market, said April 2 that it will be constructing a 120,000 mt/y sulfuric acid production unit at its Liaoning Migao potassium sulfate facility. Migao uses sulfuric acid in the production of potassium sulfate. With higher sulfuric acid prices, the company said it is compelled to add some 120,000 mt of capacity ?Çô at a cost of $8 million. The construction period is expected to be from May 2008-February 2009. Iron pyrite required to produce sulfuric acid will be sourced locally in Liaoning Province, where long-term supply is assured. Migao currently sources sulfuric acid from domestic Chinese producers. “We anticipate a payback of less than three years as a result of this vertical integration of one of our key raw materials,” said Mr. Liu Guocai, Migao’s CEO. “This project reinforces our desire and ability to secure key raw materials.” Sulfuric acid produced at Liaoning Migao will supply all the needs of potassium sulfate production at both Liaoning Migao and Changchun Migao. Acid not consumed by the two potassium facilities will be sold to local industrial customers.
Transparency Across the Fertilizer Value-Chain