Sources inform “Globes” that Haifa-Chemicals, controlled by Arie Genger, recently developed a new production method in the field of mono-potassium phosphate (MKP) fertilizers a fully water-soluble fertilizer, which will boost its sales by $15 million per year. The method could make Haifa Chemicals the world leader in water-soluble fertilizers.
Haifa Chemicals is currently the world leader in potassium nitrate manufacturing. The company finished 2003 with sales of $313 million, 14% more than in 2002. Haifa Chemicals has a 50% share in the global potassium nitrate market.
Haifa Chemicals president and CEO Gabi Politzer said that the water-soluble fertilizer process developed in the company laboratories was revolutionary, because it significantly cut production costs, compared with the competing process. The company has registered the process as a global patent. The advantage of the process is that in contrast to other processes, the raw materials used are cheaper, and do not use energy.
Waters-soluble fertilizer is used mostly in computerized irrigation systems, or in sprays. The global market amounts to 100,000 tons per year, supplied by a number of manufacturers around the world, including Israel Chemicals (TASE: CLIM) subsidiary Rotem Fertilizers.
Haifa Chemicals began operating its innovative facility this month, which will double production to 30,000 tons of fertilizer per year. The company has manufactured water-soluble fertilizer for years, but in small quantities, with a more expensive process. Up until now, Haifa Chemicals has been ranked fourth in the world in this field.
Politzer asserts that the new process will replace European and Chinese suppliers, without affecting Rotem Fertilizers. According to Politzer, the new process will be very profitable.
Haifa Chemicals has a high 8% annual growth rate, while the global market in the company’s products is growing at 4% a year. The company predicts that its growth rate in the coming years for agricultural products will reach 10-20%.
Haifa Chemicals is wholly owned by Trans Resources of the US.
Published by Globes [online] - www.globes.co.il - on April 25, 2004