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K+S to acquire Chinese magnesium sulfate fertilizers producer


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K+S to acquire Chinese magnesium sulfate fertilizers producer

Germany-based K+S AG is acquiring the activities of a Chinesemagnesium sulfate fertilizers producer, Huludao Magpower Fertilizers Co. Ltd.,as it looks to expand to Asia.

The company did not reveal the acquisition payment in itsJuly 14 release, but said it will be "a euro amount in the lowdouble-digit millions range."

"We see great sales potential for magnesium sulfateproducts to the agricultural sectors in China and Southeast Asia which we can'tservice adequately from our German sites," Chairman Norbert Steiner said.

The production site, in Huludao City in the northeastChinese province of Liaoning, has a capacity of 90,000 tonnes, which can bepotentially doubled to 180,000 tonnes, the company added.

The transaction is expected to close by the end of this year.

According to preliminary figures, K+S expects to book about€10 million in second-quarter operatingearnings, sharply down from the €179.2 million booked a year ago.