Fertilizer giant Nutrien says it plans to expand its ability to offer potash and nitrogen to producers in response to global supply challenges.
In a release, the company said it will increase its potash production to 18 million metric tons by 2025 "in response to the uncertainty of supply from Eastern Europe." This is an increase of 40% from 2020's production capability. Nutrien also plans to boost its nitrogen production an additional 500,000 metric tons by the end of 2025. All told, the company's expected nitrogen production could increase to 13.5 million metric tons by 2027.
“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,” Nutrien Interim President and CEO Ken Seitz said in a statement. “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.”
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In addition to increasing production, Nutrien plans to repurchase $4 billion in shares this year to increase shareholder return through dividends. Pedro Farah, Nutrien’s executive vice president and CFO, said the strength of the company's 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.”
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