OAO Uralkali reports that its trading arm Uralkali Trading SA has concluded an agreement with Federal Land Development Authority of Malaysia (FELDA) to create a joint venture for potash distribution. The joint venture will start operating Jan. 1, 2014, and will focus on securing potash deliveries to the plantations of FELDA and other government plantations in Malaysia and other countries.
“This joint venture is another step to further improve our sales net in Southeast Asia, which is a strategically important region for Uralkali,” said Uralkali acting CEO Viktor Belyakov. “It will also strengthen our relations with state customers in this region. Southeast Asian countries pay much attention to expanding agriculture production. Realization of such joint projects is a good opportunity for suppliers and customers to achieve long-term goals including increase in crop yields, ensuring food security and, consequently, growth in fertilizer consumption.”