Melnichenko sees to point in IPO for EuroChem, SUEK yet
SOCHI. Feb 28 (Interfax) - EuroChem is not planning an IPO in the next two or three years, as the Russian fertilizer producer has sufficient funds to independently finance its investment program, the company's principal shareholder, Andrei Melnichenko told Interfax on the sidelines of the Russian Investment Forum in Sochi.
"We're not going to do anything in the next two-three years," he said. "There's no need to attract outside investors, we have a big investment program, [but] for now we can independently manage financially," Melnichenko said.
"Our foundation is organic growth and small acquisitions," he added.
Melnichenko also said there are no plans for an IPO for other assets, including coal producer SUEK.
He also said that if the situation on the mineral fertilizer market does not deteriorate he sees no need to provide money to EuroChem to balance its covenant debt this year.
"EuroChem needs to make it through this and next year. They are going through the peak of their investment program, and then they become very cash positive. I think that with current prices in 2017 they won't need anything," Melnichenko said.
He also said that EuroChem is not abandoning the idea of building a fertilizer plant in the United States. "The subject remains, I think we'll go beyond 2019. We've slightly shifted our priorities, started construction of a large plant in Russia for 1 million tonnes of ammonia [in Kingisepp]. We will launch it next year and then we'll decide on the next ammonia [project]: it will be Nevinnomyssk or something else," Melnichenko said.
He said that for now EuroChem plans to independently sell potassium chloride, without a partnership with existing market players.
"For the next few years, while we get up to capacity, we will sell ourselves. Then we'll see. I think that we can be very competitive on this market," Melnichenko said.
Melnichenko controls 90% of EuroChem through Cyprus-based AIM Capital SE. The other 10% is held by Cyprus-based Midstream Group Limited, the beneficiary of which is company CEO Dmitry Strezhnev.