In the Orenburg Region, a trilateral agreement was signed with PhosAgro-Region and SUPMC

Yesterday, on March 15, a trilateral agreement was signed between the Government of the Orenburg Region, the largest Russian distribution network of mineral fertilizers PhosAgro-Region (PhosAgro Group) and the South Ural Plant of magnesium Compounds.

The agreement provides for an increase in the production of SUPMC to a volume of at least 250 thousand tons per year. New international sales markets will become available to the company.

– The South Ural Plant of magnesium compounds is one of the largest producers of magnesium sulfate in Russia, and its products are one of the best in quality. Thanks to the cooperation with PhosAgro-Region, our fertilizers are already known in many regions of the country, as well as abroad. The logistics capabilities of the company are becoming our competitive advantages. By increasing production volumes several times, together we solve the most important task of replacing imported products on the Russian market. The expansion of cooperation with PhosAgro-Region also helps to solve one of the priority tasks in the agro–industrial complex – the increase in the amount of mineral fertilizers applied," said Governor Denis Pasler.

The head of the region stressed that PhosAgro-Region has supplied more than 50 thousand tons of all types of mineral fertilizers to Orenburg farmers over the past 3 years. Last year, deliveries increased by 1.5 times.

The meeting also discussed the prospect of creating a PhosAgro-Region logistics center in Orenburg region.

– For almost 2 years of direct partnership with SUPMC , we have seen both the quality of the plant's products and the stable demand for it in the Russian agro-industrial complex. A foundation has been created for the development and increase in the supply of Orenburg magnesium sulfate to domestic agricultural producers through the PhosAgro-Region logistics network, which already has more than 30 distribution centers and more than 20 sales offices throughout the country. We are also confident that the active marketing of Orenburg Region products outside of Russia will allow us to establish its export supplies. We are grateful to the Government of the Orenburg Region for its active participation in strengthening the partnership between PhosAgro-Region and UUZMS and hope for further support of our joint endeavors," said PhosAgro–Region CEO Andrey Vovk.

In 2021, the first agreement was signed between the South Ural Plant of Magnesium Compounds and PhosAgro-Region (PhosAgro Group). In two years, the plant's fertilizer supplies to the Russian market have increased 9 times. YUUZMS products began to be sold in 28 regions of the country and actively replace imported analogues. By the end of 2022, the plant shipped more than 27 thousand tons of finished products.

The Government of the Orenburg region supports the enterprise. In 2021, the plant received almost 65 million rubles from the Orenburg Region Industry Development Fund for the implementation of investment projects. In 2022, the company received a loan of 54.5 million rubles to replenish working capital.

Oleg Sitak, General Director of JSC "SUPMC", noted that now the plant occupies 70% of the Russian market of magnesium sulfate. With the support of the Regional Government and PhosAgro-Region, the company will continue to expand its production and product line. Under the implementation of the new agreement, SUPMC plans to receive a loan from the Orenburg Region Industry Development Fund for the construction of a new workshop.