Israel Chemicals signs major Indian potash deal

Israel Chemicals Photo: Eyal Yizhar

Israel Chemicals has signed its first-ever long-term agreement with Indian Potash, the comuntry's largest potash importer.

Israel Chemicals (TASE: ICL: NYSE: ICL) today announced that it has signed, for the first time, a five-year supply agreement with Indian Potash Ltd. (IPL), India's largest importer of potash.

Under the terms of the agreement, Israel Chemicals will supply IPL with 600,000 tonnes per year in 2019 and 2020, increasing to 650,000 tonnes per year in 2021-2023, including options.

Prices for the quantities to be supplied under the framework agreement will be determined in accordance with the prevailing market prices in India at the relevant date of supply.

The long-term agreement was signed by the parties in a ceremony held in New Delhi that was attended by Israel's Ambassador to India Dr. Ron Malka, IPL's managing director Dr. P.S. Gahlaut, and Israel Chemicals CEO Raviv Zoller.

Israel Chemicals potash division president Noam Goldstein said, "This is the first time we have signed a long term agreement for the supply of potash in India, which represents a strategic market for ICL. We consider our company to be the most cost-competitive supplier to India due to, among other things, our geographical proximity which results in major logistical advantages, including lower transportation costs and reduced time-to-market compared to our competitors. Our agreement with IPL anchors ICL's relationship with the largest potash importer in India and, in parallel, solidifies our company's market position in India."

Published by Globes, Israel business news - en.globes.co.il - on December 27, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Israel Chemicals Photo: Eyal Yizhar
Israel Chemicals Photo: Eyal Yizhar
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