Jordanian Dead Sea Industries announced yesterday the signing of a memorandum of understanding with US company Albermarle, for the setting up of a joint bromide venture for a total investment of $120 million. The announcement was not sent officially to the Israeli Bromine company, which has a similar memorandum of understanding with the Jordanian parent company, Arab Potash.
In response, Dead Sea Bromine sent an announcement to the Tel Aviv Stock Exchange, stating that the Jordanian company had not yet notified the Israeli company negotiations had ceased, and that Albermarle was one of the companies competing with Dead Sea Bromine. Following the announcement, trading on the company’s shares was temporarily stopped.
Israel’s Ambassador to Jordan Oded Eran told "Globes" that he had approached Jordanian government officials in order to examine the implications of the signing on the Israel bromine company. "I am still attempting to ascertain whether the final nail has been put in the coffin of a joint bromine company, from Israel’s point of view. The question is whether there is any point to the Israeli company making improved proposals.
"I am most disappointed. It could have been a first class Jordanian-Israeli project, from an economic, political and regional aspect. I regret that this has happened," added Eran.
Sources close to the business discussions estimated that the US company submitted a better proposal from the economic perspective. Among others, the US proposal enables the joint company to produce more bromine than the Israel company. This contravenes the conditions in the agreement with Israel, which stipulates that joint produce will not go beyond independent Israeli production. Eran noted that the US put pressure on Jordan to make progress on the joint venture, against the background of dwindling bromine reserves in the US itself.
Sources in Jerusalem estimated today that the US-Jordanian memorandum of understanding would become a fully fledged agreement, and that the plant would be established with the US company. The sources said that this stemmed from Jordanian political and economic considerations. As an example, it was noted that King Hussein had also stopped encouraging joint ventures with Israel, due to his disappointment with the political process.
Published by Israel's Business Arena May 21, 1998