TEL AVIV, Israel, July 9, 2014 /PRNewswire/ --
Memorandum of Understanding calls for ICL Iberia to produce, and AkzoNobel Chemicals International B.V to sell and market, up to 1.5M tons of vacuum salt annually
ICL(TASE: ICL), a global manufacturer of products based on specialty minerals that fulfill essential needs of the world's growing population in the agriculture, processed food and engineered materials markets, and AkzoNobel(AEX: AKZO), a major producer of specialty chemicals and a leading global paints and coatings company, signed a non binding Memorandum of Understanding to collaborate on the long-term production and marketing of vacuum salt and white potash.
The MOU signed by AkzoNobel Chemicals International B.V and ICL's Spanish subsidiary, ICL Iberia, calls for the production and marketing of 1.5 million tons of high quality vacuum salt, as well as 50,000 tons of white potash utilizing best-in-class available technology.
High purity vacuum salt, manufactured from a salt by-product of potash mining, is used in a variety of applications by the chemical industry and also applied for specialty grades in the food and feed industries. Under the MOU, the vacuum salt will be produced by a future joint venture between AkzoNobel Chemicals International B.V and ICL Iberia and sold by AkzoNobel Chemicals International B.V. The MOU also calls for AkzoNobel Chemicals International B.V to enter into an off-take agreement with the joint venture for all of the vacuum salt produced by the joint venture. The white potash will be produced and marketed by ICL Iberia.
ICL is currently constructing a production facility for the two products at its mining facility located in Suria mine in , Catalonia, Spain, within the scope of a previously announced, €170 million Phoenix Project, to increase ICL's potash mining and production capacity at its Spanish facilities. .
The parties will benefit from strong synergies including ICL's extensive mining and production capabilities in Spain, as well as AkzoNobel's experience and technical know-how to produce the planned volumes of salt and its sales and marketing networks.
ICL Iberia's manufacturing operation to produce the vacuum salt and white potash will be fully sustainable, and will further benefit the Central Catalonia region's employment and manufacturing base.
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 traded on the Tel Aviv Stock Exchange (TASE: ICL). The company employs approximately 12,000 people worldwide, and its sales in 2013 totaled US$6.3 billion. For more information, visit the company's website at http://www.icl-group.com
About ICL Iberia
ICL Iberia, a subsidiary of ICL based in Catalonia, Spain, is Spain's sole salt and potash mining company. ICL Iberia exports 75% of its production mainly to European Union countries, Asia and South America.
AkzoNobel produces and markets salt, chlor-alkali products and derivatives like monochloroacetic acid (MCA) and chloromethanes. It is Europe's leading producer of vacuum salt for the chemical industry with production sites in Hengelo and Delfzijl in the Netherlands and Mariager in Denmark. Its specialty grade products contribute to the many successes of the food & feed, pharmaceutical and water treatment industries.
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.
Senior Account Manager