News & Analysis » China

Migao To Build 100,000 Tonne Fertilizer Facility At New Zunyi -Quick Facts

(RTTNews) - Migao Corp. (MGO.TO) Wednesday said that it will construct a new 100,000 tonne per year specialty compound fertilizer production facility at a new location in Zunyi, Guizhou Province, China.

The new 100,000 tonne per year specialty compound fertilizer production facility will be built in two modules with the initial 50,000 tonne module scheduled for completion by the end of this year.

The Zunyi facility will incorporate processing improvements learned from the Sichuan compounding facility. The new location and increased amount of land will accommodate further expansion beyond the planned 100,000 tonne facility. The capital budget to complete the two phases, including new land use rights is about C$15 million.

Liu Guocai, Migao's President and CEO, said, "One of the largest tobacco companies in China has expressed interest in purchasing large quantities of our specialty compound fertilizer. The compound fertilizer we produce at Sichuan Migao meets their requirements and we are confident that we will supply the entire 100,000 tonne output on an annual basis."

"We have changed the location and increased the amount of land we had previously secured in return for a more desirable location. It is situated within 800 metres of a rail line and ideal for the intended operation of producing specialty compound fertilizer," added Liu Guocai.