Hongsifang Fertilizer of Anhui, a subsidiary of the Chinese state-owned salt company China National Salt Industry Corporation, has reportedly signed an investment agreement to build a large-scale fertilizer complex in Korla, Bayingolin Mongol Autonomous Prefecture, Xinjiang Uyghur Autonomous Region. The total planned investment is reported at RMB 7.475 billion (approximately US$1.05 billion).
The investment agreement was reportedly signed among China Salt Anhui Hongsifang Fertilizer, the Bayingolin Prefecture government, and the Korla city government. The company reportedly plans to first invest RMB 50 million of its own capital to establish a local subsidiary, and then raise the remainder of the project cost in stages through a combination of equity and debt financing. The project is reported to aim at building an integrated production system based on synthetic ammonia and urea, extending to high-efficiency water-soluble compound fertilizer and bio-organic fertilizer. China Salt Anhui Hongsifang
Fertilizer is reportedly a fertilizer specialist based in Anhui Province under the China Salt group, with existing experience in chemical and compound fertilizer production, and this move into Xinjiang is seen as expanding the company’s production footprint from central China to the northwestern inland region, it is reported. The original report does not specify any process technology or foreign licensor.
The total planned investment is RMB 7.475 billion (approximately US$1.05 billion), and the planned production capacity is reported at 600,000 tonnes/year of synthetic ammonia, 1 million tonnes/year of urea, 1.4 million tonnes/year of high-efficiency water-soluble compound fertilizer, and 300,000 tonnes/year of bio-organic fertilizer. Construction is scheduled to begin in October 2026, with a two-year construction period followed by an additional two years to reach full production capacity (ramp-up), according to the report.
Xinjiang is reportedly a major agricultural region in China as well as an area rich in natural gas resources, providing favorable feedstock conditions for synthetic ammonia and urea production. This project is regarded as part of the China Salt group’s move to diversify beyond its salt business into fertilizer and chemicals, it is reported. It is also reported to align with the Chinese government’s broader push to expand the agricultural and chemical industrial base in Xinjiang under its western development policy.
Implications for Korea’s Industry
China’s expansion of large-scale urea and compound fertilizer production capacity could affect the global fertilizer supply structure, warranting close attention to Korea’s fertilizer supply and price trends, it is reported. Since urea has repeatedly been a source of supply concerns in Korea, the impact of China’s new production capacity on future export policy also merits close monitoring, according to the report.
Whether construction begins as scheduled in October 2026, and how construction progress and financing plans are further specified, are cited as points to watch, it is reported.