Migao to Construct New 40,000 Tonne Potassium Sulphate Facility at Its Changchun Migao Location


Source: Marketwire

- Expansion Doubles Output of Northeast China Location -

TORONTO, ONTARIO -- (Marketwire) -- 06/29/10 -- Migao Corporation (TSX: MGO), a leading producer of specialty potash fertilizers for the Chinese market, is pleased to announce that it will be constructing a new 40,000 tonne per year potassium sulphate fertilizer production facility at its existing Changchun Migao location in Jilin Province, China.

'Changchun has shown very stable pricing and growing demand as this region continues to develop its agricultural and industrial activities,' said Mr. Liu Guocai, Migao's President and CEO. 'Since early 2008, Changchun Migao has been producing 40,000 tonnes of potassium sulphate and approximately 50,000 tonnes of hydrochloric acid. The expansion doubles our production capacity at this location and, taking into account other construction projects well under way at other locations in China, will result in a 30% increase in Migao's total production capacity.'

The new 40,000 tonne per year potassium sulphate production facility is scheduled for completion in the fourth quarter of calendar 2011. Land for the project was purchased as part of the original land use rights secured in 2007. The capital budget to complete the expansion is approximately CAD $5 million.

Changchun Migao is a wholly owned subsidiary and when fully operating, will produce 80,000 tonnes of potassium sulphate and approximately 100,000 tonnes of hydrochloric acid annually.

Migao is currently producing 320,000 tonnes of capacity for its two core potash-based fertilizers. With the addition of a 40,000-tonne potassium nitrate 50/50 joint venture with SQM expansion at Sichuan Migao later this year and a new 40,000 tonne potassium sulphate facility near Shanghai in early 2011, Migao will have production capacity of 420,000 tonnes. This figure does not include the co-products ammonium chloride or hydrochloric acid nor does it include 100,000 tonnes of specialty compound fertilizer produced annually.

Annual Meeting of Shareholders

Migao's Annual Meeting of Shareholders is today, Tuesday June 29th at 4:30pm at the King Edward Hotel, Sovereign Ballroom in Toronto, Canada.

About Migao

Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate and potassium sulphate) and specialty compound fertilizers to China's agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Migao's Sichuan facility is ISO 14001 certified, an international environmental management standard. Please visit for further information.


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