Uralkali, the world's largest potash producer, is to create a joint venture for potash distribution with Malaysia as it seeks to boost sales in Southeast Asia, the company said Monday.
The move comes amid rising competition among potash producers, fueled by Uralkali when it quit a sales alliance with a peer in Belarus earlier this year, hitting global prices.
Malaysia, along with other countries in Southeast Asia, is a major market for the crop nutrient due to demand from its palm oil industry.
"This joint venture is another step to further improve our sales net in Southeast Asia, which is a strategically important region for Uralkali," Viktor Belyakov, Uralkali acting chief executive, said in a statement.
