Russian fertilizer producer EuroChem Group AG on Nov. 15 announced the official launch of its new subsidiary in Bulgaria, EuroChem Agro Bulgaria. The business is headquartered in Pleven in northern Bulgaria, and stems from EuroChem’s March 2017 acquisition of Agricola Bulgaria (GM March 3, p. 15), a Bulgarian fertilizer distribution company that was previously owned by Agrium Europe NV.
EuroChem said the launch of EuroChem Agro Bulgaria will enable EuroChem to expand its distribution footprint in Bulgaria and more widely into southern and eastern Europe, where it sees strong demand for fertilizers. At the time of its purchase of Agricola Bulgaria, EuroChem said the Bulgarian distribution company had annual fertilizer sales of 70,000-80,000 mt, accounting for around nine percent of the Bulgarian fertilizer distribution market.
“We are investing heavily in people and resources to bring our premium brands to Bulgaria, which is currently dominated by straight fertilizers and blended products,” said Dmitry Strezhnev, EuroChem CEO. “It is clear that more efficient fertilizers are needed to meet demands for reduced water use, lower emissions, and reduced nitrate leakage while also achieving higher yields.”
EuroChem said it is planning to develop production facilities in Bulgaria to facilitate the distribution of new premium products, and has invested in research and development trials for several of these products – including Nitrophoska, ENTEC, and UTEC – which showed “highly positive results” in Bulgaria.
“We see strong demands for these new products,” said Andrey Savchuk, head of Sales and Marketing, Europe and Turkey. “On large field commercial trials we have proven results, with farmers achieving higher yields and better returns with our more efficient products. We know that the quality of the cereals is assured, regardless of soil conditions or cold weather, when using our more efficient fertilizers.”
Headquartered in Zug, Switzerland, EuroChem currently operates production facilities in Belgium, China, Kazakhstan, Lithuania, and Russia, supporting distribution assets in Europe, the CIS, Asia, and North and South America. The company has more than 25,000 employees globally.