Toronto-Migao Corp., a leading producer of specialty potash fertilizers for the Chinese market, announces that it will be constructing a new 40,000 mt/y potassium sulfate (SOP) fertilizer production facility at its existing Changchun Migao location in Jilin Province, China. “Changchun has shown very stable pricing and growing demand as this region continues to develop its agricultural and industrial activities,” said Liu Guocai, Migao’s president and CEO. “Since early 2008, Changchun Migao has been producing 40,000 mt of potassium sulfate and approximately 50,000 mt of hydrochloric acid. The expansion doubles our production capacity at this location, and taking into account other construction projects well under way at other locations in China, will result in a 30 percent increase in Migao’s total production capacity.” The new 40,000 mt/y facility is scheduled for completion in the fourth quarter of calendar-year 2011. Land for the project was purchased as part of the original land use rights secured in 2007. The capital budget to complete the expansion is approximately C$5 million. Changchun Migao is a wholly owned subsidiary, and when fully operating, will produce 80,000 mt/y of potassium sulfate and approximately 100,000 mt/y of hydrochloric acid. Migao is currently producing 320,000 mt/y for its two core potash-based fertilizers. With the addition of a 40,000 mt/y potassium nitrate 50/50 joint venture expansion with Sociedad Quimica y Minera de Chile (SQM) at Sichuan Migao later this year and a new 40,000 mt/y potassium sulfate facility near Shanghai in early 2011, Migao will have production capacity of 420,000 mt/y. This figure does not include the co-products ammonium chloride or hydrochloric acid, nor does it include 100,000 mt of specialty compound fertilizer produced annually.
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