PotashCorp Announces Expansion of Purified Phosphoric Acid Plant
This expansion will not increase the company's overall capacity in phosphoric acid (P(2)O(5)), which is the key ingredient in purified acid. Rather, PotashCorp will be redirecting its existing P(2)O(5) capacity to higher-margin products sold to industrial customers in North America. Historically, these products have provided a significantly higher gross margin than phosphate fertilizers. This expansion will accommodate growing demand in both North and South America.
With this expansion, PotashCorp will continue to capitalize on its competitive advantages in purified phosphoric acid production. Foremost of these is the company's access to high-quality rock in North Carolina with fewer impurities, resulting in superior product quality. The close proximity of this ore body to the Aurora processing facility and the vertical integration of the Aurora phosphate complex also bring inherent cost savings to the process. When the expansion is complete, the plant -- already the world's largest and lowest-cost producer -- will be even larger and more efficient.
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