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 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, 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 inChina and pledge to continue meeting their needs in the future."