K + S Group 2015 - 2020

In a media release issued in November 2015, the K + S Group have outlined the management agenda for 2015 - 2020. The release reaffirms continued weakening of the potash market and the proposed strategy to tackle this. Investment in the 'Salt 2020' strategy is a clear indication that the K + S Group are confident the Salt Business Unit will continue to grow and support the Group until potash markets recover.

Potash are mined and manufactured salts that contain potassium in water-soluble form. Potash is used predominately as a fertilizer. Within industrialized economies, the mineral is also processed for uses like aluminum recycling, mining and medicine.

Having recently declined a take over proposal from Canada-based PotashCorp, the K + S Board of Executive Directors are obviously confident that the market will recover. This insight is further supported by the development of a new potash plant in Canada, titled the 'Legacy Project'.

Dr. Ulrich Lamp, President and CEO of K+S Potash Canada, announced the ongoing positive development of the 'Legacy Project': "Construction of the new potash plant in Canada is progressing very well. The project is within budget, on time and the plant is all set to be commissioned in summer 2016 as planned."

Dr. Burkhard Lohr, Chief Financial Officer, explained in the November press release that the capital expenditure in the 'Legacy Project', as well as the strict cost discipline within the Group, will have a positive effect on the financial situation of the K+S Group in the very near future: "We will see a substantial reduction in our debt levels and we expect to start generating positive free cash flows again from 2017 onwards. Our investors will benefit from this in the form of attractive dividends and an unchanged investment grade credit rating."

Source: http://www.k-plus-s.com/en/