Option to Purchase an Additional 120,000 Tons During the Period - New Contracts Affirm ICL’s Role as a Leading Supplier to the Chinese Market
ICL announced that its ICL Fertilizers segment will supply its Chinese customers with 550,000 tons of potash during the second quarter of 2012. The contracts also provide an option to purchase an additional 120,000 tons of potash during the period. The price per ton is similar to the price recorded in ICL's 2H 2011 contracts to the Chinese market.
The amount of potash to be supplied by ICL Fertilizers to its Chinese customers in the second quarter of 2012 is higher than the 500,000 tons it sold during the first half of 2011. ICL sells its potash directly to Chinese fertilizer producers and distributors.
In addition to demonstrating ICL’s growing role as a major supplier to the Chinese market, the new agreements affirm ICL’s major logistical advantage as a potash exporter to the Southeast Asian region, including fast growing markets such as China and India. ICL Fertilizers’ primary source of potash is from the Dead Sea which is in closer proximity to Asian markets than most potash producers.
Commenting on the news, Mr. Dani Chen, President & CEO of ICL Fertilizers, said “Our new potash agreements with Chinese customers testify to ICL’s growing market position as an important provider of fertilizers to the Chinese market, as well as our deepening relationships with these customers, the result of our strategy to sell directly to Chinese fertilizer producers and distributors. We are proud to play a prominent role in increasing agricultural output and food production throughout the world, especially in markets with fast-growing populations, such as China.”