KUALA LUMPUR: Malaysia’s Twin Arrow Fertilizer Group and Shanghai Wentong Group are further strengthening their strategic partnership in sulphate of potash (SOP), jointly advancing the development of potash resources in Laos, SOP production, and the expansion of the South-East Asian market.
The two parties officially signed two cooperation agreements yesterday during the opening of Agri Malaysia at the Malaysia International Trade and Exhibition Centre.
The signing ceremony was witnessed by Deputy Minister of Agriculture and Food Security of Malaysia Datuk Chan Foong Hin.
The first agreement is a memorandum of understanding for the cooperation in the production of SOP with an annual production capacity of 100,000 tonnes.
The SOP production facility in Laos has officially commenced operations, with a designed annual capacity of 100,000 tonnes.
The second agreement covers exclusive agency and sales cooperation in Malaysia, with Setia Alam, Malaysia serving as the regional sales and distribution hub.
Twin Link International Sdn Bhd will be responsible for developing and expanding SOP sales and market activities across South-East Asia.
A key breakthrough of the cooperation lies in the SOP production technology adopted at the Lao facility.
According to the two parties, the patented technology is the first in South-East Asia, and currently the only known technology in the region, to produce SOP by combining mirabilite (sodium sulphate) with locally sourced potash resources from Laos.
The process uses sodium sulphate (mirabilite) and Lao potash resources as its primary raw materials, including carnallite ore and preliminarily beneficiated crude potassium chloride ore.
Through a two-stage double-decomposition conversion process and controlled crystallisation technology, the potash resources are converted into fully water-soluble, high-grade SOP, with a potassium (K²O) content exceeding 53%.
Compared with the conventional Mannheim process, the technology aims to optimise resource utilisation and production processes, potentially reducing production costs while improving the utilisation efficiency of Lao potash resources. This provides the region with a potentially more cost-competitive approach to SOP production.
SOP is an important premium potassium fertiliser that provides both potassium (K²O) and sulphur.
Compared with potassium chloride, SOP has a lower chloride content, making it particularly suitable for crops that are sensitive to chloride or require higher-quality nutrient management.
Potassium plays an important role in plant water regulation, nutrient transportation, photosynthesis and overall plant development.
Sulphur is involved in the formation of proteins and enzymes as well as various metabolic processes, supporting normal plant growth and nutrient utilisation.
SOP is widely used in the cultivation of fruits, vegetables, potatoes, tobacco, grapes and other high-value commercial crops. Under appropriate soil and fertilisation conditions, adequate potassium supply may also contribute to improvements in crop quality, colour, size and marketability.
Within South-East Asia’s agricultural sector, SOP can also be applied in oil palm and other commercial crops, providing growers with a low-chloride and efficient potassium fertilizer option.
Tan Sri Lau Kuan Kam, chairman of Twin Arrow Fertilizer Group, said the cooperation is not simply about increasing SOP production capacity, but about establishing an integrated supply chain covering resources, production, sales and international markets.
“We are not simply adding another fertilizer product to our portfolio. We are building an SOP supply chain that connects production in Laos, operations in Malaysia and markets across South-East Asia.”
“Our objective is to provide high-quality, fully water-soluble, stable and cost-competitive SOP products, while supporting the development of more efficient and professional fertiliser application practices across South-East Asian agriculture.”
Li Gang, chairman of the Board of Shanghai Wentong Group, said the cooperation combines the respective strengths of both parties in production technology, resource development and market channels.
“With the Lao production facility now officially in operation, we will further leverage Malaysia’s strategic position as an Asean regional platform and expand the South-East Asian SOP market through Twin Link International Sdn Bhd.”
The strategic cooperation is expected to strengthen the regional supply of sulphate of potash, promote the comprehensive utilisation of Lao potash resources, and provide South-East Asian and international agricultural markets with high-quality, fully water-soluble and cost-competitive SOP fertiliser solutions.
