ICL Signs 3-Year, 3.3 Million Metric Ton Potash Supply Framework Agreements
With its Customers in China; - Firm Agreements for H1 2013 Total 660,000 Tons
Agreements Strengthen ICL's Standing as One of China's Main Potash Suppliers
TEL AVIV, Israel, January 17, 2013
TEL AVIV, Israel, January 17, 2013 /PRNewswire/ --
ICL (TASE:ICL), a multinational fertilizer and specialty chemicals company,
today announced that it has signed framework agreements to supply its
customers in China with an aggregate 3.3 million metric tons of potash over
the next three years. According to the terms of the agreements, the potash
selling price for each semester will be set in line with prevailing market
prices and arrangements in China.
(Photo: http://photos.prnewswire.com/prnh/20130117/588898 )
The scale and term of these agreements demonstrates the trust that has been
nurtured and developed between ICL Fertilizers and its growing roster of
Chinese customers, together with the desire of all parties to assure
uninterrupted multi-year cooperation. The quantities indicated in these
agreements reinforces and extends ICL Fertilizers' standing as one of the
world's central suppliers of potash to China, a massive, rapidly growing
potash market. With a population of 1.35 billion people, Chinese farmers need
ever-increasing amounts of potash to be able to supply more high-quality food,
especially in light of the region's rising standard of living and evolving
dietary habits. As such, ICL Fertilizers contributes to China's ability to
feed its population.
Under the framework of these agreements, ICL Fertilizers has committed to
deliver 660,000 metric tons of potash during the first half of 2013. The
selling price of these quantities will be in line with recent deals completed
by other potash suppliers to the Chinese market.
Although ICL Fertilizers operates potash mines in Spain and England, the
majority of the potash that ICL sells to China is produced from Israel's Dead
Sea and exported through the Israel's Red Sea Port of Eilat. This gives ICL
Fertilizers a logistical advantage for shipping potash to Southeast Asia as
compared to most of its competitors.
In 2010, ICL Fertilizers adopted a new sales and marketing strategy for its
activities in China, according to which it began selling directly to
fertilizer producers and distributors. As a result, ICL Fertilizers has
succeeded in increasing the number of its customers in China and expanded the
basket of products that it sells to the Chinese market, as demonstrated by the
2013-2015 framework agreements.
Commenting on the news, Mr. Dani Chen, CEO of ICL Fertilizers, said, "The
scope of these multi-year framework agreements with our customers in China
demonstrates once again China's need for significant quantities of potash to
feed its huge and rapidly-growing population. ICL is proud to play a vital
role in the global agriculture market, helping to increase the food supplies
available for China and the world at large.
"The milestone accomplishments of these agreements, including our growing
customer base in the Chinese market, our expanding basket of potash products
sold in significant quantities and the multi-year terms of the contracts, all
demonstrate our successful strategy aimed at reinforcing and deepening our
positioning in the Chinese market. We are grateful for the trust that our
Chinese customers have granted us and pledge to continue being an efficient,
responsive, creative and trustworthy supplier in order to continue
strengthening our relationships in the future."
ICL is one of the world's leading fertilizer and specialty chemicals
companies. For a world challenged by population growth and scarce resources,
ICL makes products that increase global food and water supplies and improve
industrial materials and processes.
ICL produces approximately a third of the world's bromine and is the 6^th
largest potash producer in the world. ICL is a leading supplier of fertilizers
in Europe and a major player in specialty fertilizer market segments.One of
the world's most integrated manufacturers and suppliers of phosphate products,
ICL has become the world's leading provider of pure phosphoric acid and a
major specialty phosphate player.
ICL is comprised of three core segments: ICL Fertilizers, ICL Industrial
Products and ICL Performance Products. Its major production activities are
located in Israel, Europe, the US, South America and China, and are supported
by major global marketing and logistics networks. ICL benefits from exclusive
concessions to extract minerals from Israel's Dead Sea, a vast source of
high-quality and low-cost potash, bromine, magnesium chloride and sodium
chloride. ICL also mines phosphate rock from Israel's Negev Desert and potash
and salt from its mines in Spain and the UK.
ICL's shares are traded on the Tel Aviv Stock Exchange (TASE: ICL).
Fleisher Communications and Public Relations
SOURCE ICL - Israel Chemicals Ltd
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