MIGO Group (09879.HK) announced that it reached an agreement with the Sichuan government institutions on Monday (21st), terminating the cooperation agreement to build a potassium fertilizer production facility in Mianyang City, Sichuan Province. The group signed the termination agreement on the same day, stating that it will no longer proceed with the original plan for the new Sichuan production facility, and will need to reassess the feasibility and location for building the new potassium fertilizer production facility.

In addition, MIGO Group plans to establish a production facility in Phu My, Bà Rịa-Vũng Tàu Province, Vietnam, with a construction area of approximately 63,510 square meters. The facility will mainly produce potassium sulfate and nitrogen-potassium compound fertilizers on one production line, with a designed annual production capacity of about 0.08 million tons of potassium sulfate and about 0.1 million tons of nitrogen-potassium compound fertilizers, with a total cost of approximately 0.265 billion RMB.

The group estimates that based on the current market demand in Southeast Asia and South Asia, assuming the market prices of relevant products remain unchanged, after expanding production capacity, the products produced at the Vietnamese facility will generate annual sales of approximately 0.4 billion to 0.5 billion RMB. (js/k)

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