Cinis Fertilizer drops production target and launches strategic review facing market pressure and lower revenue

Cinis Fertilizer has withdrawn its goal of achieving a production rate of 100,000 tons of potassium sulfate by the end of 2025, citing the need for more time and capital to complete planned efficiency upgrades. The company’s board has also initiated a strategic review to assess options for securing the long-term operation of its production facility in Örnsköldsvik, Sweden. Cinis Fertilizer, listed on Nasdaq First North Growth Market under the ticker CINIS, produces potassium sulfate fertilizer from industrial residual streams using a patented, energy-efficient process.

The review will evaluate financing alternatives, potential partnerships, and divestments, as well as new projects involving the conversion of sodium chloride into sodium hydroxide—an input used in the production of battery materials.

In September, Cinis Fertilizer produced about 5,000 tons of water-soluble potassium sulfate, 10% less than in August. The company said that despite implementing some improvement measures, additional investments will be necessary to reach its original annual output target.

“As a company, we have overcome several challenges, including supply issues and equipment deficiencies, but our revenues remain lower than planned,” said Jakob Liedberg, CEO and founder of Cinis Fertilizer. “We are observing price pressure in the market and are pursuing several countermeasures, including efficiency improvements and discussions with industrial partners for potential new facilities.”

Liedberg added that Cinis is in talks with suppliers of sodium sulfate, including leading battery, chemical, and pulp industry players in Europe, North America, Asia, and Australia.

The company expects to provide an update on the strategic review by the end of 2025.