To address the uncertainty of supply from Eastern Europe, Nutrien Ltd. (TSX: NTR) announced on Thursday its plan to grow its annual potash production to 18 million tonnes by 2025. The firm said this represents a 40% increase from its 2020 production.

“The challenge of feeding a growing world has never been clearer as global supply constraints have contributed to higher commodity prices and escalated concerns for global food security,” said Interim President and CEO Ken Seitz. “There is no simple or fast solution to overcome this challenge and we see potential for multi-year strength in agriculture and crop input market fundamentals.”

The firm plans to achieve this ramp-up by improving its existing capacity with so-called “world-class global logistics infrastructure.” Around 350 people are also expected to be added to the workforce, as well as investment in underground mining equipment, mine development, storage, and loadout capacity.

The announcement comes a month after the company bared its $2-billion project to develop the world’s largest clean ammonia facility, with an estimated annual capacity of 1.2 million metric tonnes of clean ammonia. Construction is estimated to begin in 2024 and full ammonia production is expected to start in 2027.

The agritech firm also announced its share buyback program worth $2 billion of shares, putting the 2022 repurchase program at a total of $4 billion. Including dividends, the firm estimates the total return on capital for shareholders amounts to $5 billion.

Nutrien last traded at $113.31 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.