Potassium sulfate from Australia
Our collaboration with the Australian company Kalium Lakes Limited is a further step towards achieving our growth targets as part of our Shaping 2030 strategy.
K+S ensures access to high-quality fertilizers
We have concluded an agreement with the Australian company Kalium Lakes to purchase up to 90,000 tonnes of the special fertilizer potassium sulfate (SOP) annually. It is expected to take effect from 2021.
Kalium Lakes plans to develop an underground brine deposit in Western Australia. Potassium sulfate is to be produced from the extracted brine by solar evaporation. Kalium Lakes intends to make the final investment decision in the course of 2019, so that the first significant margins of potassium sulfate can be expected at the beginning of 2021.
K+S has now secured full access to the only production of this kind currently available on the Australian continent. The agreement does not include any capital investment on our part. The term is ten years.
Expansion of specialty business
One of our strategic goals within the framework of the Group strategy Shaping 2030 is the expansion of our specialties business. This is precisely what we are supporting with the agreement with Kalium Lakes. Potassium sulfate is a higher-priced special fertilizer that is used, among other things, for fruit varieties such as mango and pineapple as well as for vegetables and tobacco.
The agreement with Kalium Lakes fits in perfectly with our Shaping 2030 strategy, which includes the expansion of our specialty business. The additional quantities of potassium sulfate will supplement our product range from our own production in Germany. At the same time, it will enable us to better supply existing customers and acquire new customers."
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