Migao Corporation, a Toronto-based company which produces potash fertilizers in China, is expanding its operations in that country by nearly a third with plans for a new plant.

 

Migao said Tuesday it is building a new 40,000 tonne per year potassium sulphate fertilizer plant at its existing Changchun Migao operations in Jilin province in northeastern China.

 

The move will double capacity at the plant and boost overall Chinese output by 30 per cent.

 

"Changchun has shown very stable pricing and growing demand as this region continues to develop its agricultural and industrial activities," Liu Guocai, the president and CEO of Migao, said in release ahead of the annual meeting of the company Tuesday.

"The expansion doubles

 our production capacity at this location and, taking into account other construction projects well under way at other locations in China, will result in a 30 per cent increase in the total production capacity of Migao."

 

The new 40,000 tonne per year potassium sulphate production plant is set for completion in the fourth quarter of 2011 and will cost about C$5 million.

 

Changchun Migao is a wholly owned Migao subsidiary and when fully operating, will produce 80,000 tonnes of potassium sulphate and 100,000 tonnes of hydrochloric acid annually.