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EuroChem 16/02/2007

IN 2006 PHOSPHORIT INCREASED AMMOPHOS PRODUCTION BY 49.5%

In 2006 Phosphorit Industrial Group, a subsidiary of EuroChem, produced 750,200 tonnes of core products, of which 554,500 tonnes of mineral fertilizers, and 195,700 tonnes of defluorinated phosphate (feed additive for livestock) – (96.3%, 98% and 97% of the level of the corresponding period last year respectively).

In 2006 the enterprise reached the design capacity of the upgraded second facility for Sulphuric Acid Production (SAP). The production of sulphuric acid for own process needs is now in accordance with planned targets for the current year and has reached 700,400 tonnes (monohydrate).

A relative reduction (down 31,000 tonnes) in sulphuric acid output in 2006 compared to 2005 resulted from the decommissioning of the worn-out and environmentally dangerous first SAP facility.

The output of wet-process phosphoric acid (100% Р2О5) produced for own process needs was 295,700 tonnes, up 32,000 tonnes from the level of 2005, despite the decommissioning of the non-profitable ore-mining plant in July 2006 upon the decision of the EuroChem Board of Directors.

In the total volume of fertilizers produced, the output of ammophos was 444,000 tonnes, up 49.5% from the level of the previous year. Meanwhile the quality of product granules has been substantially improved, their flaking capacity reduced, and the possibility of blocking during storage and transportation cut to zero. Compared to the same period, the output of sulphoammophos reduced to 110,300 tonnes (44.9%). The ammophos output growth along with sulphoammophos output reduction was envisaged in 2006 production plan and is related to the environment of phosphate market.