Depending on world potash prices Belarusian potash producer could add capacity
Belaruskali plans to increase its production capacity for potash fertilizers to 15.9 million tons by 2025. At the moment, its production capacity is 12.9 million tons. Production volumes would depend on concluded contracts, so as warehouse stocks are minimal. In H2 2017, potash production is likely to decrease, entailing a decrease in the growth rates of the chemical industry. Lowered export duties on potash fertilizers unlikely to boost the company’s profits and enhance investment due to higher transportation costs. Due to low demand for potash from customers, potash prices are unlikely to grow at a faster pace. In addition, new players are expected to enter the potash market. Taking into account the planned construction of a potash plant by Slavkali and enhanced competition on the fertilizer market, Belaruskali production plans are likely to be adjusted downward to ensure higher prices on foreign markets.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.