ICL continues global specialty fertilizers expansion with ~$170 million distribution agreement in China

Date:08-28-2024

ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, announced it has signed a five-year agreement with AMP Holdings Group Co. Ltd., one of China's top agricultural distribution companies. The agreement, valued at approximately $170 million, will run until 2028 and advances ICL’s stated goal to expand its Growing Solutions product offerings and to position the business for further growth in major end-markets.

The agreement is for specialty water soluble fertilizers, which are used in drip irrigation and designed for cash-crops, such as apples, watermelons, vegetables, strawberries, ginger and grapes. It includes a minimum purchase commitment, with certain exclusivity conditions based on brand and region.

The rising demand for specialty fertilizers in China has mirrored the growth of high-value crops there, which is driven by the promising return on investment these crops offer. China has also seen significant shifts in agricultural practices, in recent years, due to extreme weather fluctuations, varied crop types, and a shrinking agricultural workforce. As a result, there has been a substantial increase in the adoption of drip irrigation, which is driving demand for specialty soluble fertilizers and making China the world's largest market for fertigation.

ICL is committed to continuous innovation and to bringing new ideas and products to partners like AMP. This includes offerings such as the company’s recent introduction of a unique phosphate and potassium specialty suspension solution that was designed specifically for drone application, which is a booming agricultural sector in China.

AMP Holdings pioneered the distribution of irrigation-based specialty products in China and has been a leader in this area for more than a decade. They were among the first in China to recognize the value of specialty water soluble fertilizers and to establish a dedicated team of agronomists and sales professionals. AMP Holdings has been a strategic specialty fertilizer partner for ICL for several years and boasts significant distribution capabilities that outpace other companies in the Chinese market.

"Our soluble fertilizer products are recognized as market leaders in China – a key region for us – and this agreement with AMP Holdings will further strengthen ICL’s position in the premium part of China's specialty fertilizer market,″ said Elad Aharonson, president of ICL Growing Solutions. ″We are gratified that AMP continues to select ICL as a partner, and we value our relationship with them and appreciate the endorsement of our expertise in specialty soluble fertilizers from one of the leading agricultural distribution companies in China."

″We are pleased to expand our relationship with ICL Group and to partner together to bring innovative specialty solutions to the Chinese market,″ said Ye Hong, general manager of AMP Holdings. ″Together, we are helping farmers maximize their investments and their yields, through the use of specialty irrigation-based fertilizers.″

This partnership marks another step forward for ICL, in expanding its footprint in the Chinese market and underscores the company's commitment to delivering innovative agricultural solutions in response to evolving regional market needs.