ICL Exploring the Construction of a Production Plant to Produce Potassium Nitrate

TEL AVIV, Israel, March 23, 2015 /PRNewswire/ --

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, processed food and engineered materials markets, today announced that it is examining options to erect a potassium nitrate production plant to enable ICL to increase its production of soluble fertilizers and food-grade phosphoric acid. The Company's examination is in line with its 'Next Step Forward' growth strategy to meet anticipated increased need for soluble specialty fertilizers, as well as for food-grade phosphoric acid.

Potassium nitrate is a major component in liquid and water soluble fertilizers, as well as in several other industrial applications. Food-grade phosphoric acid is produced by reacting phosphate rock with hydrochloric acid (HCl), followed by several cleansing steps.

The scale of the proposed plant would be designed to secure ICL's internal needs, as well as to supply international markets. The construction of a new plant to produce potassium nitrate would benefit ICL's customers by broadening ICL's line of soluble fertilizers and food-grade phosphoric acid products throughout the world and enabling ICL to provide better and more comprehensive service.  

The Company has initiated a project to analyze and determine the optimal location to construct the potassium nitrate plant based on considerations that include raw materials supply (including potash, phosphate rock and ammonia), logistical considerations, tax and investment encouragement policies and proximity to ICL's customers. ICL currently produces potash in Israel, England and Spain, and it mines phosphate rock in Israel.

Commenting on the proposed plant, ICL Fertilizers President & CEO, Mr. Nissim Adar stated: "As part of ICL's global expansion strategy we are focused on scaling the capacity of our manufacturing activities for our growing Specialty Fertilizers and Specialty Foods businesses. We see a number of substantial advantages arising from the construction of a potassium nitrate plant which would enable ICL to better convert our raw materials into specialized, downstream products for both the specialty fertilizers and food additives markets, thereby enhancing our position as a leading company in these areas. As a company dedicated to meeting essential human needs in agriculture and food, as well as engineered materials, we view the development of this additional manufacturing capability as vital for strengthening our product portfolios in the areas of soluble specialty fertilizers to support agrochemical needs and solidifying our role as a global leader in integrated solutions for food texture and stability. The new plant would also enable us to enhance our back integration to key raw materials and better serve our markets worldwide."

About ICL   

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.

PRESS CONTACT
Amiram Fleisher
Fleisher Communications
+972-3-6241241
[email protected]

SOURCE ICL

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