ICL Signs Contracts to Supply 835,000 Tonnes of Potash, Including Options, to its Customers in India
Jun 19, 2015, 09:19 ET
TEL AVIV, Israel, June 19, 2015 /PRNewswire/ --
ICL (NYSE and TASE: ICL), a global manufacturer of products that fulfill essential needs in the agriculture, processed food and engineered materials markets, today announced that its ICL Fertilizers segment signed several contracts for the supply of an aggregate of 835,000 metric tonnes of potash to its customers in India, including options. The selling price stipulated in the contracts is $10 per tonne above previous contracts and similar to the prices announced recently by other potash manufacturers for sales to the Indian market.
The new contracts demonstrate the strong relationships that ICL has developed with its customers in India who elected to wait until the conclusion of ICL's recent strike to negotiate the contracts with ICL Fertilizers. ICL's position as one of the world's main suppliers of potash to India testifies to the success of its strategy which views with importance the strategic, large and growing Indian market and which enables it to maximize ICL's advantages over most of its competitors as a result of its open air storage capabilities at Sdom, near the Dead Sea, as well as logistical advantages achieved by shipping potash from the port of Eilat to India quickly and at relatively low cost.
In addition, ICL is active in India through its 'Potash for Life' farmer training program and promotion of potash consumption. The program, launched in October 2013, is designed to unlock the potential of agriculture in India by promoting balanced fertilization among India's farmers to increase agricultural productivity and economic benefits, as well as to contribute to the creation of sustainable food production in India. The program, which includes hundreds of potash demonstration plots, has achieved substantial progress in providing Indian farmers with science-based evidence of the many benefits and improved profitability that derives from using potash fertilizers on over 20 crops that have been tested to date.
Commenting on the news, Mr. Nissim Adar, President & CEO of ICL Fertilizers, said, "The new contracts that we have signed with our customers in India confirm our leading position in the strategic Indian market, whose potential for rapid growth is expected to be a leading driver of worldwide potash demand for years to come as a result of the rise in India's standard of living, among other factors, which is transforming eating habits and driving the need to provide sufficient quantities of food for a large population that will only continue to grow in the future. These factors are leading to the growing use of fertilizers, and ICL's supply of a wide variety of fertilizer products can help to increase agricultural output in every area and sector and thereby help to provide India's large population with sufficient quantities of quality food. We are proud of our ability to supply India with our broad range of fertilizer products, and we appreciate, and are thankful for the trust that our customers have placed in us."
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.
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