EuroChem plans $2.2 billion investment to expand Usolskiy potash complex

Russian fertilizer producer EuroChem plans to invest about 200 billion rubles ($2.2 billion) in the expansion and modernization of its Usolskiy Potash Complex in Russia’s Perm region between 2025 and 2029, company founder Andrey Melnichenko said.

EuroChem expects the complex to produce more than 3 million tons of potassium chloride (KCl) in 2026, compared with 3 million tons in 2025. About 2.1 million tons of last year’s output was premium granular product. The company plans to complete the modernization of its existing processing plant by the end of 2026, increasing its capacity from 2.9 million to 3.4 million tons a year.

Second phase to add 1.8 million tons of capacity

The main part of the investment program is the second phase of the Usolskiy complex, which EuroChem plans to launch in 2028. The project includes a new processing plant with annual capacity of 1.8 million tons of KCl. The facility is expected to reach its designed capacity in 2029.

Melnichenko said EuroChem expects total production at Usolskiy to reach 5.2 million tons in 2029, with a potential increase to 5.4 million tons if the company implements additional technical measures.

The company launched Usolskiy in 2018. The first phase reached its initial designed capacity of 2.3 million tons in 2021 and was subsequently expanded to 2.9 million tons a year. EuroChem is also completing construction of a third shaft at the mine as part of the expansion program.

The expansion is intended to nearly double the complex’s current production capacity and strengthen EuroChem’s position in the global potash market. The company also operates the Volgakaliy potash project in Russia’s Volgograd region.

Sources: Vedomosti; Finmarket; EuroChem