Belgium’s Tessenderlo Group this week confirmed to Green Markets that it is considering whether there is a need to construct a plant for the production of Thio-Sul® (ammonium thiosulfate) for distribution in Eastern European and CIS countries, and is evaluating whether Grodno, in western Belarus, would be a good location for such a plant.
Various articles recently have been published reporting that Tessenderlo was mulling investing in an ammonium thiosulfate production facility in Belarus (GM Feb. 19, p. 37).
In its statement, the group said the mulled investment forms part of its current evaluation of the long-term evolution of the fertilizer market in various Eastern European and CIS countries, including Belarus.
“The analysis we are making is in line with the execution of the group’s strategy to support the increased long-term demand from the market for liquid fertilizer solutions, which offer complementary sulfur nutrition and reduce nitrogen losses,” the statement read.
“The strategy is to support local agriculture and improve food security standards, as well as provide a response to environmental challenges. Today, the liquid fertilizer Thio-Sul is typically used in blends with UAN for broad-acre crops as well as arboricultural and vegetable crop cultivation,” it continued.
Tessenderlo said at present, a potential investment case, which it emphasized would take “some years to be realized,” and which it confirmed will involve the production of Thio-Sul, is being considered in Grodno/Belarus for various reasons.
It outlined these reasons as Grodno being located near important agricultural markets where there is already a sizeable and growing consumption of UAN as liquid nitrogen fertilizer.
Thanks to its geographical location, Grodno is also an ideal hub for deliveries to Eastern-EU and CIS countries, as well as into overseas markets.
Additionally, the group said local companies in Grodno already produce ammonia, which means that “this hazardous product” does not need to be transported, thus substantially reducing the risks of supply operations. It added that this is also the local experience in regard to operating chemical facilities, as well as local universities offering agriculture specializations.
Tessenderlo said in any case, it is looking to make “a major investment in a location in the broader Eastern-European/CIS region in order to support a sustainable growth and qualitative productivity increase of agriculture in that region.”
The group said it will make a definitive statement accordingly once a final decision has been taken on this matter.
According to a report by Russia’s Fertilizer Daily earlier this month, a production capacity of 100,000 mt/y ammonium thiosulfate is being assessed with Grodno Azot supplying the ammonia. The report did not cite its sources.