Migao to expand SOP capacity, inks nitrate deal

Toronto-Migao Corp. a China-based leading specialty potash fertilizer producer, reports plans for a sixth location in China to produce specialty potash-based fertilizer. The new facility, located in Zunyi, Guizhou Province, will initially produce 40,000 mt potassium sulfate in its first phase of construction. Construction is expected to be completed by the end of 2008. An additional 40,000 mt of SOP capacity will be scheduled after the first phase is complete. Not including the new capacity at Zunyi, expansion activity currently in progress includes two new 40,000 mt SOP facilities in Shanghai and Changchun, and an expansion of 20,000 mt of potassium nitrate at Sichuan Migao. With the completion of the announced expansion projects, including the first phase of Zunyi, the annual combined production capacity of potassium nitrate and SOP will exceed 340,000 mt, representing an increase of 70 percent over the current production of 200,000 mt/y. In the meantime, Migao reports that the China National Agricultural Means of Production Group Corporation (CNAMPGC), one of China’s largest agricultural companies, has paid in advance for an order of 10,000 mt of SOP to be delivered from Migao’s Liaoning facility in northeastern China.