K+S to cut potash production for remainder of 2019
K+S has responded to the current weak demand for potash by reducing fertilizer production for potassium chloride by up to 300 000 t by the end of 2019.
The effect of the production adjustment on EBITDA is expected to be approximately €80 million.
“In the current weak market environment, which is further intensified by the continuing Chinese import bans on the standard potassium chloride product, adjusting production is a difficult decision, but the right one,” said Alexa Hergenröther, CEO of K+S's Europe+ operating unit.
“Irrespective of this, we are continuing to work hard on implementing the ongoing measures to increase product quality at the Bethune plant in Canada and to strengthen operational excellence at the German sites,” Hergenröther added.
The company will publish its 3Q19 results on 14 November.
Russian producer Uralkali announced last week that it would scale back potash production, while Nutrien has initiated temporary inventory shutdowns at three of its potash mines in Saskatchewan, Canada.