As more global markets return to purchasing potash, sales are expected to rebound in the second quarter, PotashCorp president and CEO Bill Doyle told attendees of the company’s annual shareholders meeting last week.
“We are going to have record export shipments in the second quarter of this year,” Doyle said at the meeting. “We see a very strong last nine months in 2012 and we see a very, very good year in 2013 as India and others returns to the market in a more fulsome way.”
PotashCorp is not the only company projecting strong sales in the next few years. Other fertilizer companies are ramping up production to meet expected demand in 2013 and beyond. PotashCorp is on track to increase its production capacity to 17.1 metric tons by 2015. If that output is achieved, it will represent a doubling of the company’s capacity since 2003.
Doyle explained that since potash mines are expensive and time-consuming to construct, he does not anticipate any Greenfield mines coming into production within the next five years. Costs for raw materials and labor will increase with inflation, which will keep a tight check on bringing new mines into production.
In addition to production goals, Doyle announced employment goals at the meeting. He shared that PotashCorp plans to reach 2,500 employees by 2013.
“We are going to need a 1,000 more hires, and we will be very active hiring here over the next three years.”
Internationally, Doyle also mentions PotashCorp’s involvement in Canpotex, which is planning to make its first shipment to Myanmar, formerly known as Burma. Economic sanctions have been lifted from Asian country, which has allowed potash shipments to begin in this country.