TEL-AVIV, Israel, Sept. 10, 2019 /PRNewswire/ -- ICL (NYSE: ICL & TASE: ICL), a leading global specialty minerals and specialty chemicals company, today announced that its ICL Industrial Products division ("ICL-IP"), the world's largest producer of bromine and bromine based products, is increasing its bromine compounds capacity after entering into several strategic agreements with customers in Asia, for ICL–IP's elemental bromine and bromine compounds products.
ICL-IP will increase its production capacity of TBBA, a bromine compound used primarily in the manufacture of printed circuit boards for the electronics industry, at its bromine compounds plant near the Dead Sea in Israel, by up to 25,000 metric tonnes annually. It also intends to increase by 50% its production capacity of FR1025, an environmentally-friendly polymeric flame retardant used in the automotive industry, and to enlarge its isotank fleet by around 10%. The company will invest approximately $50 million for these capacity expansions and anticipates that they will generate additional annual revenues of up to $110 million, beginning in 2021.
ICL-IP's planned capacity increases result, in part, from several strategic agreements recently signed by ICL-IP with its customers in Asia, following a decrease in bromine production in China that has created a tight supply-demand balance of TBBA, Hydrobromic acid (HBR) and elemental bromine in the market. The continuing depletion of Chinese bromine resources, together with increased environmental regulatory pressure, is expected to result in greater motivation among Chinese customers to seek a reliable, long term supplier to ensure their uninterrupted production.
Anat Tal, President of ICL-IP, stated, "The strategic agreements we recently signed, and the resulting expansion of our flame retardants production capacity, testifies to ICL-IP's unparalleled position in the global bromine market, as well as our efficient operations, quality products, and high safety and environmental standards. Our capacity expansion is designed to allow us to meet existing contract requirements as well as to enter into new, long-term strategic contracts for the sale of our products with other customers, further strengthening our global market position."
ICL is a global specialty minerals and chemicals company operating bromine, potash, and phosphate mineral value chains in a unique, integrated business model. ICL extracts raw materials from well-positioned mineral assets and utilizes technology and industrial know-how to add value for customers in key agricultural and industrial markets worldwide. ICL focuses on strengthening leadership positions in all of its core value chains. It also plans to strengthen and diversify its offerings of innovative agro solutions by leveraging ICL's existing capabilities and agronomic know-how, as well as the Israeli technological ecosystem. ICL's operations are divided into four business divisions: Industrial Products (bromine value chain and complementary business); Potash; Phosphate Solutions (P2O5 Chain); and Innovative Ag Solutions. ICL shares are dually listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The Company employs more than 11,000 people worldwide, and its sales in 2018 totaled approximately US$5.6 billion. For more information, visit the Company's website at www.icl-group.com
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