Update on Legacy Project
(Excerpt from the Half-Yearly Financial Report)
The focus in the second quarter of 2016 was to complete the construction of the steel structure of the factory, work on the building fronts and interior, including pipeline construction and electrical installations, and work on the rail connection. Moreover, preparatory tasks have started ahead of commissioning. Work has progressed well. On 17 July 2016 however, a process vessel became detached from its mounting during a routine test and fell to the floor causing considerable damage to property. Nobody was injured. Intensive efforts have already been made together with the partners involved (including insurance companies) to assess and repair the damage.
Commissioning is still scheduled for the end of August 2016. Based on present findings, the production of the first tonne of potash should start in the second quarter of 2017 and not at the end of 2016 as originally forecasted. Regardless of this, K+S is still assuming that it will be able to reach its target production capacity of 2 million tonnes at the end of 2017. Production will be below the expected volume of up to 1 million tonnes in the course of the delayed start-up period next year.
K+S is an international raw materials company. We have been mining and processing mineral raw materials for over 125 years. The products we produce from these raw materials are used worldwide in agriculture, food and road safety and are important elements in numerous industrial processes. The nutrients potash and salt will accompany a major future trend: A constantly growing global population is becoming increasingly prosperous and striving for a more modern standard of living, which results in an increasing consumption of mineral raw materials. We satisfy the consequent growth in demand from production sites in Europe, North America and South America as well as through a global distribution network. K+S is the world’s largest salt producer and one of the top potash providers worldwide. With more than 14,000 employees, K+S generated revenues of approx. € 4.2 billion and EBIT of € 782 million in the 2015 financial year.
Visit www.k-plus-s.com to find out more about K+S.
This press release contains facts and forecasts that relate to the future development of the K+S Group and its companies. The forecasts are estimates that we have made on the basis of all the information available to us at this moment in time. Should the assumptions underlying these forecasts prove incorrect or should certain risks – such as those referred to in the Risk Report – materialise, actual developments and results may deviate from current expectations. The Company assumes no obligation to update the statements contained in this press release, save for the making of such disclosures as required by law.
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