ICL Signs 3.4 Million Tonnes Potash Supply Framework Agreements With Its Customers in China
TEL AVIV, Israel, January 4, 2016 /PRNewswire/ --
- Agreements demonstrate ICL's strong relationships with its customers in China and its position as one of China's main potash suppliers -
ICL (NYSE and 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, announced today that it signed framework agreements with its customers in China to supply an aggregate 3.4 million tonnes of potash (including options) over the next three years. According to the terms of the agreements, the selling prices will be established in line with prevailing market prices in China.
The scale and term of these framework agreements demonstrate the strong and stable relationships between ICL Fertilizers and its customers in China. The agreements, which represent a 3% increase over ICL's previous three-year framework agreements with its Chinese customers, call for the delivery of 1.1 million tonnes of potash in 2016, 1.14 million tonnes in 2017 and 1.16 million tonnes in 2018. Previous framework agreement quantities of 3.3 million tonnes (including options) were supplied in full.
The new agreements reinforce ICL's position as one of the world's main suppliers of potash to China, a strategic, large and growing potash market.
ICL Fertilizers maintains a critical advantage over most of its competitors in China as a result of its logistical position derived from shipping potash to China from Israel's Red Sea port of Eilat at relatively low cost as well as its open air storage capabilities at Israel's Dead Sea.
Commenting on the news, Mr. Nissim Adar, President of ICL Fertilizers, said, "Our new multi-year framework agreements with customers in China for 2016-2018 demonstrate once again ICL Fertilizers' major role in helping to increase food supplies in China. The quantities and multi-year terms of the agreements also reflect our strong and stable relationships in the Chinese market, as well as our successful efforts to maintain - and even increase - our position in the market. We are grateful for the trust placed in ICL by our customers in China and pledge to continue meeting their needs in the future."
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.
ICL produces approximately a third of the world's bromine, and is the sixth largest potash producer, as well as the leading provider of pure phosphoric acid. It is a major manufacturer of specialty fertilizers, specialty phosphates and flame retardants. ICL's mining and manufacturing activities are located in Israel, Europe, the Americas and China, and are supported by global distribution and supply networks.
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 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 number of unique advantages, including its vertically integrated activities and complementary and synergistic downstream operations for the production of unique end products; its balanced and varied product portfolio in growing markets; 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). 46% of ICL's equity is held by Israel Corp., 13.8% by Potash Corporation of Saskatchewan and the remainder by the public.
The company employs approximately 14,000 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 statements that constitute "forward-looking statements", many of which can be identified by the use of forward-looking words such as "anticipate", "believe", "could", "expect", "should", "plan", "intend", "estimate" and "potential" among others. Forward-looking statements are based on our management's current beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, changes in the demand and price environment of the products as well as shipping and energy costs, whether caused by actions of governments, manufacturers or consumers, changes in the capital markets, including fluctuations in currency exchange rates, credit availability, interest rates, changes in the competition structure in the market, shortage with respect to our principal raw materials, the difference between actual reserves and the reserve estimates, accidents or disruptions in the manufacturing facilities, failure to provide the necessary infrastructure and services, and those in "Item 3. Key Information-D. Risk Factors" in the Company's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on March 20, 2015. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update or revise them or any other information contained in this press release, whether as a result of new information, future developments or otherwise.
INVESTOR RELATIONS CONTACT
Head of Investor Relations, ICL
More by this Source
ICL Announces CEO’s Resignation
09 Sep, 2016, 00:14 BST
ICL Signs Contracts to Supply 700,000 Metric Tonnes of Potash to its Customers in China
26 Jul, 2016, 11:25 BST
Get content for your website
Enhance your website's or blog's content with PR Newswire's customised real-time news feeds.
Contact PR Newswire
Send us an email at MarketingUK@prnewswire.co.uk or call us at +44 (0)20 7454 5382
Become a PR Newswire client
Request more information about PR Newswire products & services or call us at +44 (0)20 7454 5382