ARVI project: NPK FERTILIZER PLANT 2013
ARVI GROUP Hotel Fertilizers business 60%
Social projects Business consultations
Sugar business 20% Animal by–products processing Turkey business 7%
Salt business 3%
5%
% - estimated in 2013 y. SPECIFITY
• • • • •
Shareholders – actively participating in business. Business sector: agribusiness, food production. Employees ~ 1.000. Turnover - 250 m€. Countries: Lithuania, Latvia, Russia, Ukraine, Romania, Belarus.
Implemented project – NPK fertilizer plant
Fertilizer plant (Arvi fertis) in Lithuania Production capability 130 thousand tonnes per year
Implemented project – NPK fertilizer plant
Fertilizer plant (Arvi NPK) in Kaliningrad (Russian Federation) Production capability 240 thousand tonnes per year
Objects of project
Investments: Buildings + infrastructure + land clearing + technological equipment + transport + other machinery
Investment size: 25,2 million EUR
Investment size: 37,7 million EUR
plant capacity: 140 000 t per year
plant capacity: 245 000 t per year
Buildings and infrastructure
Technological equipment and transport
Buildings and infrastructure
Technological equipment and transport
12,5 million EUR
12,7 million EUR
18,7 million EUR
19,0 million EUR
NPK fertilizer plant – project
NPK fertilizer plant – project
NPK fertilizer plant – project
Schedule and size of investment
NPK fertilizer plant – 140 000 tonnes per year Implementation of project – 24 months: Manufacturing non-standard equipment Installation and adjustment of production
INVESTMENT, million EUR
up to 12 months up to 12 months
1 year
2 year
TOTAL
Buildings and infrastructure
3,1
9,4
12,5
Technological equipment
2,4
7,1
9,5
Transport
0,0
1,2
1,2
Other
1,3
0,6
1,9
Is planned to reach 70-80% of productive capacity at the first year of production.
Schedule and size of investment
NPK fertilizer plant – 245 000 tonnes per year Implementation of project – 24 months: Manufacturing non-standard equipment Installation and adjustment of production
INVESTMENT, million EUR
up to 12 months up to 12 months
1 year
2 year
TOTAL
Buildings and infrastructure
4,7
14,0
18,7
Technological equipment
3,6
10,7
14,3
Transport
0,0
1,8
1,8
Other
2,0
0,9
2,9
Is planned to reach 70-80% of productive capacity at the first year of production.
Information about NPK plant
Territory: Total area Built-up area Travel paths and storage area (10 000 tones packaged products) Existing railway line and additional branch for importation and uploading of raw materials, as packaged products. Parameters and the need for energy : natural gas – 16 m3/tone (max. – 1000 m3/hour) or LPG – 10 kg/tone (max. – 500 kg/hour) technical water – 0,19 m3/tone (max. – 10 m3/hour) steam (saturated) – 0,1 tone/tone (max. – 4,0 tone/hour) 3 air (compressed to 8 bar) – 40 m /tone (max. – 20 m3/minute) electricity – 34 kWh/tone (max. – 2,0 MW)
3,8 hectares 0,9 hectares 1,2 hectares well as for export of bulk and
Description of planned production
Fertilizers (complex) NPK, with a high content of potassium (K2O), brands: NPK 8-20-30+S; NPK 8-15-30+S. It is planned that 80 percent fertilizer production will be with a similar content of potassium (K2O). Fertilizers (complex) NPK, with the addition of trace elements, brands: NPK 17-10-14 +S; NPK 17-6-11+S+Mg+B; NPK 15-15-15+S; NPK 8-24-24+S In addition to these products (brands) a company can produce (on request) more than 40 different fertilizers (complex) NPK brands. Suppliers of raw materials: the producers of CIS countries.
Description of planned production
For production of fertilizers (complex) NPK is supposed to use modern technological equipment for automated dosing and blending, granulation, as well as filling and packaging of finished products. Such a fertilizer plant will ensure not only its high efficiency (minimal operating costs and losses), but will be able switch types of fertilizer production, from one to another. Leaves of finished product from the plant are assumed as bulk (railway transport) and packaged form (in soft containers with a capacity of 500 and 50 kg). It is planned that packaged products will be 40% of the total production.
Technological process
Equipment supplier for the plant – «The Sackett & Sons Co» (USA) Technology: granulation of NPK fertilizers carried out by irrigation, steaming (steam granulation) and neutralization (pipe reactor) processes. Project is environmentally safe. Technological process and equipment meets all environmental requirements. Waste-free process.
Initial calculations
Production volumes: NPK 8-20-30 + S NPK 8-15-30 + S NPK 17-10-14 + S NPK 17-6-11 + S + Mg + B NPK 15-15-15 + S NPK 8-24-24 Number of workers: Average salary: Energy resources: Gas Electricity Prices of materials: Ammonium sulfate Potassium chloride Phosphorus components – MAP Phosphorus components – DAP UREA Project results: Discounted payback period IRR NPV
140 000 tonnes per year
245 000 tonnes per year
29,0 30,0 13,0 13,0 25,0 30,0 50-60 650-750
50,8 52,5 22,8 22,8 43,8 52,5 90-100 650-750
,000 tonnes per year ,000 tonnes per year ,000 tonnes per year ,000 tonnes per year ,000 tonnes per year ,000 tonnes per year
2.240,0 4.760,0
3.920,0 8.330,0
,000 m3 per year ,000 kWh per year EUR/ton EUR/ton EUR/ton EUR/ton EUR/ton
150,00 340,00 430,00 430,00 360,00 8-9 6,8% 2.078,6
EUR/month
6-7 9,7% 8.674,2
years million EUR
Factors affecting increase of fertilizer demand
World's population: According to the World Bank, world's population increases every year by 75 million people. Agricultural producers must continue to increase production volumes and fully improve its effectiveness in addition to meet this growth and fulfill its needs.
Changes in diet: Eating habits has been changed during the years of economic growth (particularly in emerging markets). As a result, a need for food per capita increased. According to the World Economic Forum in 2050, demand for food will increase by 70-90%. More than a quarter of growth in demand for cereal crops will be caused not so much by population growth, how much by changes in diet.
Arable land: The area of land, suitable for food supply (to ensure needs of food caused by growing number of public) is limited. Between 1961 and 2007, world population grew by 115%. The area of arable land increased only by 10%. If in 1961, one acre of land can feed 2.4 people, now days same acre – 4.7 person.
Needs of fertilizers to produce alternative fuels.
Contacts: UAB „ARVI“ ir ko J. Basanavičiaus a. 8, Marijampolė, LT – 68308 Lithuania
Phone:
+370 343 97 767 / +370 343 31 020
Fax:
+370 343 51 576
E-mail:
[email protected]