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Published 3rd September 2007

Migao to build a sixth production facility for specialty potash in China

Migao Corporation, the China-based leading specialty potash fertilizer producer, has announced the addition of its sixth location in China. The new facility located in Zunyi, Guizhou Province will initially produce 40,000 tonnes of potassium sulphate in its first phase of construction.

Construction of the 40,000 tonne potassium sulphate facility is expected to be completed by the end of 2008. An additional 40,000 tonnes of potassium sulphate production capacity will be scheduled after the first phase is complete.

Not including the new capacity at Zunyi, expansion activity currently in progress includes two new 40,000 tonne potassium sulphate facilities in Shanghai and Changchun, and an expansion of 20,000 tonnes of potassium nitrate at Sichuan Migao. With the completion of the announced expansion projects, including the first phase of Zunyi, the annual combined production capacity of potassium nitrate and potassium sulphate will be in excess of 340,000 tonnes, representing an increase of 70 percent over the current production of 200,000 tonnes per year running at full capacity.

The new facility will sell to the local fruit, vegetable and tobacco industries. Guizhou Province is the second largest producer of tobacco in China.