ICL and AkzoNobel Enter Agreements to Produce and Market Vaccuum Salt and White Potash

28 Apr 2015 --- 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, and AkzoNobel, a major producer of specialty chemicals and a leading global paints and coatings company, announced the signing of several agreements for the long-term production and marketing of vacuum salt and white potash.

The agreements signed by AkzoNobel Industrial Chemicals and ICL's Spanish subsidiary, ICL Iberia, provides for ICL's production, and AkzoNobel's marketing, of 1.5 million tons per annum of high quality vacuum salt. Additionally, 50,000 tons of white potash will be produced and marketed by ICL.

High purity vacuum salt is used in a variety of applications by the chemical industry and for specialty grades in the food and feed industries, as well as for water treatment applications. The vacuum salt will be produced by ICL Iberia and sold by AkzoNobel Industrial Chemicals by way of an off-take agreement for the products.

According to the agreements, ICL will finance and construct two production plants at its mining facility located in Suria in Catalonia, Spain, each plant will enable the production of 750K tonnes of vacuum salt. The first plant is scheduled for completion in 2015 and the second in 2017. The construction of the plants is within the scope of ICL's previously announced €175 million Phoenix Project to increase ICL's mining and production capacity at ICL Iberia.

The parties to this agreement will benefit from strong synergies between ICL's extensive mining and production capabilities in Spain, and AkzoNobel's experience, technical capability, sales and marketing networks in the salt industry.

ICL Iberia's manufacturing operation to produce the vacuum salt and white potash will contribute to expanding Central Catalonia region's employment and manufacturing base.

Commenting on the agreements with AkzoNobel, Nissim Adar, CEO of ICL Fertilizers, stated, "We are delighted to create this partnership with AkzoNobel which will bring added value to our activities at ICL Iberia over the long term. This commercial endeavor will also benefit AkzoNobel, which will obtain a reliable source of high quality salt, as well as the environment in the area around our mine in Catalonia, Spain. ICL Iberia is currently expanding its potash production capacity at Suria, and our cooperation with AkzoNobel will allow us to recover additional valuable potash through the production of this specialty salt.     

"This strategic partnership will enhance our market position and provide our Salt business with a strong foothold in southern Europe," added Knut Schwalenberg, President of AkzoNobel Specialty Chemicals. "As a sustainability leader with salt technology and marketing at our core, we are ideally positioned to work with ICL and ensure that they realize the full benefits of their Suria mine expansion."