K+S, Kassel, Germany, said today it is responding to the current weak demand for potash by reducing fertilizer production for potassium chloride by up to 300,000 mt thousand by the end of 2019. The effect of the production adjustment on EBITDA is expected to be in the amount of up to 80 million euros.
“In the current weak market environment, which is further intensified by the continuing Chinese import bans on the standard potassium chloride product, adjusting production is a difficult decision, but the right one,” said Alexa Hergenröther, CEO of K+S’s Europe+ Operating Unit. “Irrespective of this, we are continuing to work hard on implementing the ongoing measures to increase product quality at the Bethune plant in Canada and to strengthen operational excellence at the German sites.”
Brazil’s Fertilizantes Heringer may wind up under the control of Russian players Uralkali Group and Uralchem Group, pending regulatory approval, according to a Bloomberg report citing regulatory filings. Controlling shareholder, Heringer Participacoes, and its quotaholders executed a binding letter of intent with Uralkali and Uralchem to subscribe for new issuance of common shares, in Heringer’s capital increase, for 2 reais per share. After the completion the capital increase Uralkali and Uralchem will hold shares representing the control of Fertilizantes Heringer. The total amount of capital increase will be no less than $59 million and no more than $115 million.
Heringer has been in bankruptcy proceedings. Nutrien Ltd. and OCP Group are both minority holders in Fertilizantes Heringer, with about 10 percent each.
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