Cinis Fertilizer has dropped its current production target of 100,000 t/y of potassium sulphate (SOP) for the year-end and will undertake a strategic review.

In its statement, the company said that planned improvement measures at its production site in northern Sweden will take more time and capital than previously estimated. “The board has also initiated a strategic review of the company’s operations to investigate the possibilities of securing operations at the company’s production facility in Örnsköldsvik.”

The review will focus on capital raising to secure the financing of business operations and the required investments needed to reach the target output of 100,000 t/y SOP.

The scope of the review also includes the evaluation of financing projects at other locations that incorporate the processing of sodium chloride into sodium hydroxide, an input into the production of battery materials. The review includes financing, collaborations and potential divestments, the statement continued.

In September, the company produced 5,000 tonnes of water-soluble SOP, which was 10% lower than the August volume. During September, planned improvement measures were implemented in conjunction with the continued evaluation of how to increase production output. “The company estimates that without additional investments, production will not reach the previously announced annual rate of 100,000 tons.”

“Cinis Fertilizer has an underlying viable business, and we have overcome several obstacles, including failed deliveries of residual flows and deficiencies in delivered equipment, but with lower revenues than planned,” said Jakob Liedberg, CEO and founder of Cinis Fertilizer.

“In recent months, we have observed ongoing price pressure in the market and been working on multiple counter measures, beyond improved production efficiency, to strengthen our profitability.”

“We have ongoing discussions with several industrial partners for the supply of sodium sulfate to potential future production facilities. The players include leading battery manufacturers, chemical industries, and pulp mills in Europe, North America, Asia, and Australia.”

Cinis Fertilizer is aiming to provide an update on the strategic review by the end of 2025.

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