K+S Group may realize some of its assets
Having reviewed the situation on the global potash fertilizer market, the Board of Directors of the German K+S Group decided to accelerate the implementation of measures provided for by the Shaping 2030 growth strategy.
According to the company’s press release, despite the progress made in implementing the strategy, the current difficult market conditions are hindering the achievement of the financial goals, in particular, the reduction of the debts. Therefore, it was decided to pay serious attention to improving the efficiency of the units both in Europe and North America.
For example, the new Bethune potash mine built by the K+S Group in Canada is worth € 5 billion euros. At the same time, the production of fertilizer specialities is high-margin.
Thus, K+S Group may sell part of its existing assets in the short term, thereby reducing its debt.
“The rapid reduction of indebtedness is our top priority. We will now consistently implement the package of measures to crystallize value. We need a solid financial basis to achieve sustainable growth,” says Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K+S AG.
