Kazakhstan Potash Corporation (KPC) and Chongqing Agricultural Production Material Group have agreed to jointly develop a major fertilizer production and distribution hub in China, according to the Kazinform news agency. The companies will build a potash distribution center and a compound fertilizer plant in the southwest province of Chongqing. The plant will have a turnover of around 3 million t/y, making it the largest facility in western China.

The products will be sold in southwest China and also exported to Japan and Southeast Asian countries, according to Wan Zhongcheng, chairman of Chongqing Agricultural Production Material Group. A comprehensive logistics base will also be developed, integrating road, rail, and waterway transport in Jiangjin, which is located on the Yangtze River. As part of the deal, potash from Kazakhstan will be delivered to China via the Chongqing-Europe rail network which will greatly cut transport costs, Wan said.

The jv aims to achieve annual revenues of more than 20 billion yuan – about $3 billion – in three to five years, with a profit of 200 million yuan. It is also said to be planning to list on an overseas stock market. KPC is an Australian-listed mineral exploration company that owns the rights to three large potash deposits in Kazakhstan. China requires about 14 million t/y of potassium chloride, about half of which is imported.