Acron Ships 100,000 Tonnes of Liquid Fertilisers to Argentina

21January2020

Acron Ships 100,000 Tonnes of Liquid Fertilisers to Argentina

In 2019, Acron Group, a leading fertiliser producer in Russia and globally, supplied Argentina with over 100,000 tonnes of liquid fertilisers, predominantly urea-ammonium nitrate (UAN). This highly effective fertiliser is widely used by local growers to produce corn and wheat.

Acron Group established a local distribution company, Acron Argentina S.R.L., for direct fertiliser sales to the Argentinian market, and the first ship carrying UAN reached Argentina in early May 2019. Subsequently, to expand its liquid fertiliser portfolio and complement UAN with sulphur, a key macronutrient for growers in Argentina, Acron started supplying ammonium thiosulfate solution (ATS).

To support direct sales of liquid fertilisers, Acron Group has leased storage facilities with a total capacity of about 50,000 tonnes in the strategically located ports of San Martin and Zarate, and hired a highly qualified team with extensive experience in fertiliser sales in Argentina.

Acron's Vice President Overseas Dmitry Khabrat commented:

“We continue to expand our strategic business geography, developing the distribution segment where we see potential for market growth and where our presence can provide additional benefits to customers. Acron's UAN is already in great demand in the agricultural sector in Argentina. However, buyers had limited access to the global UAN market due to poor infrastructure. We have managed to solve this issue. We use the storage facilities to maintain UAN inventories and ship supplies to growers as needed, even as little as a single truckload. We expect our share of the country's liquid fertiliser market to reach 20% in the near future. Next year, we plan to start selling dry fertilisers to Argentina”.

Acron Argentina S.R.L. was established in 2018 and registered in Buenos Aires.

Acron Group is one of the world's top three UAN producers and a leading UAN supplier to the United States.

Media Contacts:

Sergey Dorofeev
Anastasiya Gromova
Tatiana Smirnova
Public Relations
Phone: +7 (495) 777-08-65 (ext. 5196)

Investor Contacts:

Ilya Popov
Investor Relations
Phone: +7 (495) 745-77-45 (ext. 5252)

Background Information

Acron Group is a leading vertically integrated mineral fertiliser producer in Russia and globally, with chemical production facilities in Veliky Novgorod (Acron) and the Smolensk region (Dorogobuzh). The Group owns and operates a phosphate mine in Murmansk region (North-Western Phosphorous Company, NWPC) and is implementing a potash development project in Perm Krai (Verkhnekamsk Potash Company, VPC). It owns transportation and logistics infrastructure, including three Baltic port terminals and distribution networks in Russia and China. Acron's subsidiary, North Atlantic Potash Inc. (NAP), holds mining licences for 11 parcels of the potassium salt deposit at Prairie Evaporite, Saskatchewan, Canada. Acron also holds a minority stake (19.8%) in Polish Grupa Azoty, one of the largest chemical producers in Europe.

In 2018, the Group sold 7.3 million tonnes of various products to 67 countries, with Russia, Brazil, Europe and the United States as key markets.

In 2018, the Group posted consolidated IFRS revenue of RUB 108,062 million (USD 1,723 million) and net profit of RUB 13,318 million (USD 212 million). Acron's shares are on the Level 1 quotation list of the Moscow Exchange and its global depositary receipts are traded at the London Stock Exchange (ticker AKRN). Acron employs approximately 11,000 people.

For more information about Acron Group, please visit www.acron.ru/en.