ICL Expands Activities in India: Establishes Joint Venture With Zuari Industries for Production and Distribution of Water Soluble Fertilizers
TEL-AVIV, Israel, July 31 /PRNewswire-FirstCall/ — Israel Chemicals Ltd. (“ICL”) , a multinational fertilizer and specialty chemicals company, today announced that it has embarked on a cooperative venture with Zuari Industries Ltd., to jointly establish and operate a soluble fertilizer production facility, and to carry out joint sales activities throughout India. Zuari is a member of the K.K. Birla Group, a multinational conglomerate based in India, and one of India’s major producers and distributors of fertilizers and agricultural products. ICL believes the partnership will expand its sales of high-margin specialty fertilizers significantly throughout this rapidly-developing market and position it to increase sales of all ICL Fertilizer products.
Under the framework of the agreement, ICL and Zuari will distribute water soluble fertilizers throughout India, and will jointly establish a water soluble NPK fertilizer plant with an initial capacity of 10,000 tons per year. The building and operation of the plant will take advantage of the complementary technology, knowledge, experience and raw materials of the two companies.
The goal of the joint venture is to expand both companies’ specialty fertilizer activities throughout the rapidly growing Indian market. Zuari will give ICL access to its top-tier sales, marketing and distribution channels as well as to its customer base in India, helping ICL to strengthen the regional sales of its Specialty Fertilizer product lines.
Commenting on the news, Mr. Yossi Zidon, Senior VP of ICL’s Specialty Fertilizers, said, “The rapid growth of agriculture in India, together with the local market’s increasing use of intensive agricultural methods, represents an exciting opportunity for ICL Fertilizers. Indian sales of soluble fertilizers have been doubling each year since 2003, and we, as one of the world’s leading providers of water soluble fertilizers, see an excellent opportunity in this country. We are confident that the plant’s high quality products, which will benefit from their usage of Israeli technology and raw materials, will enable us to establish a strong market position in this growing market.
“As a partner for this venture, Zuari is the optimal choice. Its strong local marketing and operational capabilities are a perfect complement to us, reducing the expenses required for us to establish local production, sales and marketing efforts. Just as important, the fact that Zuari has been one of our primary Indian clients for years has built a strong platform of mutual respect and trust between our two companies, representing a solid foundation for our joint venture. Taken as a whole, we are pleased to enter into this partnership and optimistic regarding its future potential.”
About Zuari Industries Ltd. (ZIL)
Zuari Industries Ltd. (ZIL) is part of the K.K.Birla Group, a company publicly traded on the Indian Stock Exchange. The market capitalization of the K.K Birla Group is about $2.5 billion. Zuari’s 2006 revenues were approximately $1.0 billion. Zuari has established strong distribution channels, especially in southern and western India. In 2006, Zuari purchased approximately 235 thousand tons of potash from ICL Fertilizers in 2006.
About ICL
ICL is one of the world’s leading fertilizer and specialty chemicals companies. ICL produces approximately a third of the world’s bromine and approximately 10% of its potash. ICL is a leading supplier of fertilizers in Europe and a major player in specialty fertilizer market segments. One of the world’s most integrated manufacturers and suppliers of phosphate products, ICL has become the world’s leading provider of pure phosphoric acid and a major specialty phosphate player. The Company employs approximately 9,500 employees worldwide.
ICL is comprised of three core segments: ICL Fertilizers, ICL Industrial Products and ICL Performance Products. Its major production activities are located in Israel, Europe, the US, South America and China, and are supported by major global marketing and logistics networks. ICL benefits from concessions to extract minerals from Israel’s Dead Sea, a vast source of high-quality and low-cost potash, bromine, magnesium chloride and sodium chloride. ICL also mines phosphate rock from Israel’s Negev Desert and potash and salt from its mines in Spain and the UK.
ICL’s (Israel Chemicals Ltd.) shares are traded on the Tel Aviv Stock Exchange .
Press Contact Fleisher Communications and Public Relations Amiram Fleisher +972-3-6241241 amiram@fleisher-pr.com
ICL – Israel Chemicals Ltd
CONTACT: Press Contact: Fleisher Communications and Public Relations,Amiram Fleisher, +972-3-6241241, amiram@fleisher-pr.com