Nutrien announces plans to increase fertilizer production capability

 Ramping up potash production capability to 18 million tonnes by 2025 and planning for approximately $2 billion in additional share repurchases in 2022

 Saskatchewan based Nutrien Ltd announced it plans to increase fertilizer production capability in response to structural changes in global energy, agriculture and fertilizer markets. The company is hosting a virtual investor update meeting today at 10:30 am EDT and will provide details on its strategic growth and capital allocation plans at this event.

“The challenge of feeding a growing world has never been clearer as global supply constraints have contributed to higher commodity prices and escalated concerns for global food security. There is no simple or fast solution to overcome this challenge and we see potential for multi-year strength in agriculture and crop input market fundamentals,” said Ken Seitz, Nutrien’s Interim President and CEO.

“Nutrien’s integrated business is best positioned to respond to these supply challenges and help sustainably feed a growing world. We are safely bringing on additional low-cost potash and nitrogen production from our existing facilities, while delivering the products, services and solutions growers need through our leading global Retail network,” added Seitz.

Accelerating Potash Production Ramp-Up

Nutrien is accelerating the ramp-up of its annual potash production capability to 18 million tonnes by 2025 in response to the uncertainty of supply from Eastern Europe. This represents an increase of more than 5 million tonnes, or 40 percent, compared to our production in 2020. The acceleration pathway is through existing low-cost capacity that is unmatched in the industry and supported by world-class global logistics infrastructure. The incremental production capability is expected to be added at a similar annual pace to the additions over the past two years.

To boost production, the company will hire and train approximately 350 people and invest in underground mining equipment, mine development, storage and loadout capacity. Nutrien continues to evaluate additional low-cost brownfield expansion opportunities beyond 18 million tonnes at its Saskatchewan mines that would supply longer-term market demand growth.

 “The strength of our expected cash flow provides an opportunity to accelerate our strategic growth initiatives and return significant cash to shareholders. The additional planned share repurchases announced today reflect our confidence in Nutrien’s near-term earnings and the potential for a more robust long-term outlook,” said Pedro Farah, Nutrien’s Executive Vice President and CFO.

 Ramping up potash production capability to 18