The MOU, outlines Sinochem’s intentions to purchase phosphate rock and phosphate fertilizers, including premium products, from Mosaic.
Potash and phosphate producer the Mosaic Company (NYSE:MOS) announced that it has entered into a memorandum of understanding (MOU) with Sinochem (SHA:600500), China’s largest agricultural inputs company. The MOU, outlines Sinochem’s intentions to purchase phosphate rock and phosphate fertilizers, including premium products, from Mosaic.
As quoted from the press release:
“We are pleased to build on our promising relationship with Sinochem,” said Mosaic president and CEO Joc O’Rourke. “Sinochem is developing a modern agriculture platform for China, and we at Mosaic look forward to partnering with Sinochem to contribute to this important progress for Chinese farmers.”
The MOU establishes a mutually beneficial relationship through which Mosaic could contribute to Sinochem’s success by providing both expertise and products. Terms and conditions of the purchases are to be outlined in a separate contract between the two parties.
“We believe this agreement can lead to meaningful value for Mosaic, Sinochem and China’s farmers,” Mr. O’Rourke said.