K+S increases capital expenditures for new potash plant in Canada
- Basic engineering of the Legacy Project further advanced
- Supervisory Board agrees to the decision of the Board of Executive Directors for raising the capex budget to 4.1 billion CAD
- Production capacity of 2 million tonnes will be available as planned by 2017
- Commissioning expected in summer of 2016 (so far end of 2015)
- Financing of the still economically attractive and strategically important potash project secured
The Supervisory Board today has approved the decision of the Board ofExecutive Directors to increase the capex budget for the new plant to 4.1billion CAD (approx. 3 billion EUR). The so far assessed 3.25 billion CAD were based on the feasibility study conducted in November 2011.
Taking all data of the profitability calculation into account the projectis economically attractive and still fulfills the requirement of the Group,to earn a 15% premium on the cost of capital before taxes. The Financingwill be ensured by existing liquidity, future cash flows and new debt.
With the expected commissioning in summer 2016 the company still projectsto reach the two-million-tonnes-mark of production capacity at the newlocation at the end of 2017. The gradual extension of the annual capacityto 2.86 million tonnes of potash products will occur afterwards. So far thecompany assumed a production start at the end of 2015.
Kassel, 22 April 2013
The Board of Executive Directors
End of the ad hoc disclosure