The Brazilian Verde AgriTech has started working to double the capacity of its second production plant, currently under construction (Factory 2), located in the state of Minas Gerais.
Verde will also upgrade the local infrastructure to support the increased production of Plant 2 and enable a future Plant 3 (expansion plan). Plant 2 is on track to start production in 3Q22, and expanded production capacity is expected to be operational in early 4Q22. Verde plans to begin construction of Plant 3 in 2023 subject to permits.
In light of recent geopolitical events involving Russia and Ukraine, including the collateral impact of economic sanctions against Russia and its ally Belarus on Brazil’s potash supply, Verde’s Board of Directors approved at the unanimously an accelerated investment program to support the expansion plan. Plant 2 is on track to achieve commercial production of Verde’s multinutrient potash products, BAKS® and K Forte® sold internationally as Super Greensand®, by 3Q22 with an initial operating capacity of 1.2 million tpa. The company will simultaneously work on the expansion plan with two main objectives:
- Increase Plant 2 operational capacity from 1.2m tpa to 2.4m tpa by 4Q22.
- Upgrade local infrastructure to support Plant 2 logistics with additional capacity to enable a future Plant 3.
By 4Q22, with the expansion of Plant 2, Verde expects to have increased its overall production capacity to 3 million tpa, becoming Brazil’s largest potash producer. On February 10, 2022, the company received a new 2.5 million tpy mining concession, bringing the total capacity now fully licensed to mine to 2.83 million tpy.
“Over the past few months, we have watched the escalation of tensions in Ukraine and have become concerned about the suffering of innocent people caught up in this geopolitical standoff. Given the latest sanctions applied to Belarus and Russia, we are fully aware of the collateral impact on Brazilian agriculture in the event of a potash supply disruption. We are also concerned about a global food shortage, which could be unavoidable in the event of a fertilizer supply disruption,” commented Cristiano Veloso, Founder and CEO of Verde.
Brazil is the world’s second largest consumer of potash and the largest importer. The country depends on imports for more than 96% of its potash needs. Verde’s potash production in Brazil is strategic for the development of domestic supply that will increasingly help reduce the country’s dependence on imported fertilizers and meet Brazil’s production demand. , consumption and export of foodstuffs. This strategy becomes particularly important in light of recent geopolitical events directly and indirectly involving two of the world’s largest potash producers, Russia and Belarus.
In 2021, Brazil’s potash consumption (in K2O) was 7.92 million, which is equivalent to 79.2 million t of product from Verde. This market amounted to 3.99 million t (in K2O) in 2010 and 2.71 million t (in K2O) in 2000, reflecting the growth of agricultural production in Brazil.
Read the article online at: https://www.worldfertilizer.com/potash/04032022/verde-to-reach-3-million-t-potash-production-capacity-in-2022/