In May, 2006, Migao Corporation finalized its transformation from a private, wholly owned Chinese business to a China-based publicly traded Canadian business on the Toronto Stock Exchange (TSX).
Locations (Click on a location for more information.)
More information about Changchun Migao will soon be available.
Migao's second operational facility and the first potassium sulphate production is found in the city of Guangzhou, Guangdong Province. After its first full year of production in calendar 2005, Guangdong Migao, at full capacity, produced 40,000 tonnes of potassium sulphate. A by-product of manufacturing potassium sulphate is hydrochloric acid. Guangdong Migao produces approximately 50,000 tonnes of hydrochloric acid. This product provides a reliable and profitable revenue source as there are numerous applications of hydrochloric acid for local industrial customers.
Migao is currently constructing Phase II of its expansion plans at the Guangdong location. Phase II will add 40,000 tonnes of potassium sulphate capacity. The expansion plan also includes a sulphuric acid production facility. Sulphuric acid is one of the key inputs in the manufacture of potassium sulphate. This strategic development will reduce the input costs as well as being able to reduce energy costs - in the production of sulphuric acid, heat is generated that can be converted into electricity, which will be used to power the Guangdong facility.
When completed at the end of 2006, Guangdong Migao will have 80,000 tonnes of potassium sulphate production capacity.
Liaoning Migao is the Company's latest fertilizer processing facility, producing 40,000 tonnes of potassium sulphate. Liaoning is located in North-eastern China in the city of Yingkou, Liaoning Province. Construction was completed in December 2005 and the facility ramped up to full production in March, 2006. Similar to Guangdong Migao, the Liaoning facility produces approximately 50,000 tonnes of hydrochloric acid as a by-product of potassium sulphate for sale to local industrial customers.
By 2008, the Company expects to expand Liaoning's production to a total of 80,000 tonnes of potassium sulphate. The expansion phase will include granular-form potassium sulphate. Currently, the majority of Migao's fertilizers are in powdered form. As compared with the powdered fertilizer, the granular fertilizer has good physical performance, will not cake during long-term storage, is easy to handle, and can be easily spread mechanically. The use of granular chemical fertilizer, to be produced by Liaoning Migao, is a relatively new trend in China that follows fertilizer development in western countries.
More information about Shanghai Migao will soon be available.
Sichaun Migao, located in Chengdu City, Sichuan Province, is the Company's only potassium nitrate facility. Established in 2003, this is Migao's oldest facility and in 2005, at full capacity, produced 50,000 tons of potassium nitrate. As a result of the manufacturing process of potassium nitrate, ammonium chloride is produced as a by-product. Last year, Sichuan Migao produced 30,000 tonnes of ammonium chloride which was sold to local customers as a traditional nitrogen fertilizer.
The company is planning to double Sichuan Migao's current potassium nitrate production capacity through the construction of a new facility on the Sichaun Migao property in the city of Chengdu. This region of China is home to a well-established industrial chemical industry as well, large-scale tobacco growing occurs in the surrounding provinces.
Patent-pending technology is employed in the production process of potassium nitrate at the Sichuan location. This technology ensures an accurate and consistent chemical composition of each bag of potassium nitrate. This commitment to quality is very important to Migao's agricultural customers. Reduced energy demand and environmental effluence are also benefits of the new technology. The patent is expected to be awarded later in 2006.