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KaiLin and Wengfu merge, Argus Media report

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World Fertilizer,

Argus Media is reporting that China's state-owned phosphate producers Wengfu and Kailin have officially merged, which has created the country's largest phosphate and NPK producer.

The announcement this week confirmed what has been rumoured in the industry for nearly a year. The merger will create a joint firm with phosphate/NPK capacity of more than 10 million tpy.

Kailin and Wengfu are both based in the southwest province of Guizhou, and were China's second and third largest phosphate fertilizer producers respectively in 2018. But the merger will put them above Yunnan-based producer YTH's 8.7 million tpy capacity.

The combined firm will have phosphate reserves of around 1.5 billion t, accounting for 40% of China's total.

China's phosphate fertilizer production dropped by 0.9% to 16.96 tpy of P2O5 last year amid environmental controls, according to statistics from the China Phosphate and Compound Fertilizer Industry Association.

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Fertilizer project news PhosAgro news