TEL AVIV, Israel, April 23, 2015 /PRNewswire/ --
- Amounts undelivered in H1 due to the strike at ICL Dead Sea will be delivered in H2
ICL(NYSE & TASE: ICL), a global manufacturer of products based on specialty minerals that fulfill essential needs of the world's growing population in the agriculture, food and engineered materials markets, today announced that it signed agreements to supply its customers in China with an aggregate 1.1 million metric tons of potash during 2015. The agreements include options for an additional 100,000 metric tons. According to the terms of the agreements, the potash selling price for the first half of the year will be in line with the prevailing market price in China (an increase of $10 per metric ton).
According to the contracts, which are part of three-year framework agreements between ICL and its Chinese customers, most of the quantities that are undeliverable during the first half of 2015 as a result of the strike at ICL Dead Sea will be delivered to the Chinese customers during the second half of the year.
The new contracts demonstrate the strong relationships that ICL has developed with its customers in China, and are an expression of their support of, and trust in ICL notwithstanding potential supply problems as a result of the strike. The contracts reinforce ICL's standing as one of the world's main suppliers of potash to China, a rapidly growing potash market.
Commenting on the news, Mr. Nissim Adar, CEO of ICL Fertilizers, said, "The agreements we have signed with our customers in China for 2015 confirm ICL's strategy to reinforce our position in the Chinese market by marketing and selling directly to potash manufacturers and distributors. We are grateful for the trust and confidence they have placed in ICL over the years - and especially during this period - and we will continue to work diligently to strengthen their trust."
ICL is a global manufacturer of products based on specialty minerals that fulfill humanity's essential needs primarily in three markets: agriculture, food and engineered materials. The agricultural products that ICL produces help to feed the world's growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that ICL produces enable people to have greater access to more varied and higher quality food. ICL's water treatment products supply clean water to millions of people, as well as to industry around the world. Other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials.
ICL benefits from a broad presence throughout the world and proximity to large markets, including in emerging regions. ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL's manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.
ICL is a public company whose shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs approximately 12,500 people worldwide, and its sales in 2014 totaled US$6.1 billion. For more information, visit the company's website at http://www.icl-group.com
Forward Looking Statement
This press release contains forward-looking assessments and judgments regarding macro-economic conditions and the Group's markets, and there is no certainty as to whether, when and/or at what rate these projections will materialize. Management's projections are likely to change in light of market fluctuations, especially in ICL's manufacturing locations and target markets. In addition, ICL is likely to be affected by changes in the demand and price environment for its products as well as the cost of shipping and energy, whether caused by actions of governments, manufacturers or consumers. ICL can also be affected by changes in the capital markets, including fluctuations in currency exchange rates, credit availability, interest rates, etc.