MOSCOW (MRC) -- K+S (Kassel, Germany) and Remex, a subsidiary of Remondis Group (Lunen, Germany), are bundling their waste-management activities in a new joint venture (JV) called REKS, K+S says, said Chemweek.
The partners plan jointly to tap into the rapidly growing market for reutilization and disposal, as well as sustainable waste-management solutions, K+S adds. REKS will combine the operations and infrastructure of K+S’s waste-management facilities with the sales network of Remex. “The waste-management market provides this partnership with an attractive development potential,” says Burkhard Lohr, chairman of K+S.
The JV will offer K+S “the best possible access” to the materials needed in the future to cover large tailings piles at the company’s potash sites in Germany, K+S says. To avoid tailings pile water resulting from precipitation and to solve one essential issue of water protection in the long run, all tailings piles are to be suitably covered by means of new, environmentally friendly processes, the company says.
K+S’s stake in REKS, which is to be consolidated at equity, will enable K+S to realize a significant book gain, while generating a cash inflow of about EUR90 million (USD110 million) before taxes with closing. This forms part of a package of measures to reduce K+S’s debt.
K+S will incorporate its waste-management sales activities into the partnership. The underground waste-management facilities of K+S are exclusively available to the JV, it says. Remex is contributing its wholly owned subsidiary Aurec, which processes mineral waste for backfilling at the K+S site at Bernburg, Germany, as well as corresponding sales activities.
The transaction will be submitted to the antitrust authorities for approval with closing expected in summer 2021.
As MRC informed earlier, K+S (Kassel, Germany) has reported an adjusted group net loss of EUR1.97 billion (USD2.33 billion) for the third quarter, plunging year on year (YOY) from a loss of EUR41.8 million, due mainly to a EUR2.0-billion write-down of the company's potash assets after it lowered assumptions for long-term global potash prices.
As MRC informed earlier, in September, 2.014 million tons of mineral fertilizers were produced (in terms of 100% nutrients) against 1.993 million tons a month earlier. In general, in January - September 2020, Russian enterprises produced just over 18.5 million tons of fertilizers, which is 3.5% more than in 2019.
Also, in 2019, Russian enterprises produced 23.588 million tons of fertilizers, which is 3.2% more than in 2018.
MRC