Acron Group
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| Public (ПAO) | |
| Traded as | MCX: AKRN, LSE: AKRN |
| Industry | Chemicals |
| Founded | 1961 |
| Headquarters | Velikiy Novgorod, Russia |
Key people |
Vladimir Kunitsky, (CEO) Alexander Popov, (Chairman) |
| Products | Nitrogen fertilizers, nitrates |
| Revenue |
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 | |
Number of employees | 10,883 |
| Website | www.acron.ru/en |
Acron Group (Russian: Группа "Акрон") is a leading global mineral fertilizer producer.
History
At the core of the Group are two production facilities, Acron (established in 1961) and Dorogobuzh (established in 1965), which at one time formed the basis of the Soviet fertiliser industry. After the collapse of the Soviet Union, both enterprises were privatised, underwent a large-scale revamping and adopted the long-term reconstruction and upgrade programme and consolidated corporate governance system. Early in this decade the Company set a course to develop a vertically integrated business. Today, in addition to its production assets, the Group has its own logistics and distribution networks and is investing in raw material projects. In order to strengthen its hand in the world's largest fertiliser market – China – in 2005 the Group acquired complex fertiliser producer Hongri Acron and created its own extensive distribution network. In August 2016 Hongri Acron plant was sold to a Hong Kong industrial and investment company. In 2011 the company entered a joint venture with Rio Tinto to develop the Albany potash prospect in Saskatchewan, Canada.[2]
Owners and Executives
Shareholder structure as of 31 January 2017
- Redbrick Investments S.a.r.l. (62.19% of authorised capital),
- Acronagroservice (23.27% of authorised capital),
- National Settlement Depository (nominee holder) (9.43% of authorised capital).
Vladimir Kunitsky, Chairman of the Managing Board and CEO (since 29 July 2011). Vladimir Gavrikov was executive director in 2005–2011; he is still a member of the board of directors and also a deputy of the duma (parliament) of Novogord Oblast.
Alexander Popov, Chairman of the Board of Directors.
The Group’s ultimate parent is Terasta Enterprises Limited. The Group is ultimately controlled by Mr Viatcheslav Kantor.
Operations
Acron is a global mineral fertiliser producer with a diversified product portfolio consisting of complex fertilisers such as NPK and bulk blends, and nitrogen fertilisers such as urea, ammonium nitrate and urea-ammonium nitrate. The Group's key markets are Russia, Brazil, Europe and the United States.
Acron has two production facilities – Acron (Veliky Novgorod, Russia) and Dorogobuzh (Smolensk Region, Russia). Acron’s logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea – at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Muuga port. The Group operates distribution networks in Russia and China. Acron employs 10,883 people.
North-Western Phosphorus Company (NWPC) was established by Acron in 2005 to secure an independent phosphate raw material base. On 24 October 2006 NWPC obtained state licences to develop apatite-nepheline ore deposits at the Oleniy Ruchey and Partomchorr fields in the Murmansk region.
Oleniy Ruchey Mine:
- 2009–2011 Construction of the processing facilities, an open pit and infrastructure.
- 2012 Completion of the mine’s first stage; own phosphate production (1 mn tpa capacity).
- 2012–2017 Commissioning of the underground mine, the second mine’s stage. Increase in apatite concentrate production capacity to 2 mn tpa.
Verkhnekamsk Potash Company (VPC) implements a project to create a potash raw material base for Acron Group. In 2008, Acron Group obtained a licence to develop the Talitsky area of the Verkhnekamsk potassium-magnesium salt deposit (VPMSD) with sylvinite reserves (categories А+В+С1) of 681.5 mn t. The deposit development is expected to start in 2018. The Talitsky mine design capacity is 2 mtpa of KCl.
In June 2014 the company reported positive exploration results from its Albany potash development, in southern Saskatchewan, Canada which it holds in partnership with Rio Tinto. The company in a statement described the site as "one of the best potash development opportunities in the world." [2]
Performance Highlights
In 2017, the Group’s output of ammonia and mineral fertilisers (exclusive of own use) totaled 7.3 million tonnes. In 2017 the Group’s consolidated revenues under IFRS were RUB 94.3 billion (US$1.6 billion), and net profit was RUB 14.3 billion (US$244 million).
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Sales
The Group sells its products both via retailers and directly to end users. The Group established its own distribution network under the Agronova brand in 2005 to improve the efficiency of its domestic sales. Agronova comprises 12 specialised agrochemical companies, which allow a direct access to product consumers in major farming regions of the country. The total storage capacity of the distribution network is 189,000 tonnes. Acron USA Inc. was founded by Acron in 2008 to handle marketing, distribution and sea transportation of the Group’s export cargos. Acron Switzerland AG was set up in 2009 to supply the Group’s products to the European market. In the end of 2017, Acron Group established a distribution company in France, Acron France SAS. In May 2018, Acron Group set up a distribution company in Brasil, Acron Brasil Ltda. The Group continues to develop its own distribution network in China, called Yong Sheng Feng. Yong Sheng Feng’s key business is wholesaling fertilisers and other chemicals.
External links
- Acron official website
- IFA member companies
- Acron is the new Russian fertilizer play as world potash prices soar. Retrieved on 13 August 2008.
- Acron to reduce listing after commodity decline. Retrieved on 13 August 2008.