ICL Forms Joint Venture with Leading Chinese Phosphate Producer Yunnan Yuntianhua

Israel Chemicals (NYSE:ICL) announced that it has completed the formation of a joint venture with China’s Yunnan Phosphate Chemicals Group (SHA:600096).
As quoted in the press release:

The YPH JV, which includes a world-scale phosphate rock mine producing approximately 2.5 million tonnes of phosphate annually and a large-scale phosphate operation, is expected to be a leading player in  China’s phosphate sector, operating an integrated, world-scale phosphate platform across the value chain. It will include upstream mining, bulk fertilizers and downstream businesses in specialty fertilizers, as well as in specialty phosphates for the food and engineered materials markets.
ICL’s current phosphates business is focused on fulfilling essential needs in agriculture (commodity and specialty fertilizers), food (texture and stabilization of processed foods) and engineered materials (for industrial markets). Beginning from a competitive rock-mineral basis, 75% of the phosphate products of ICL’s phosphate business unit are sold via a fully integrated value chain, from bulk fertilizers downstream into specialty applications.

Stefan Borgas, CEO of ICL, commented:

We are very pleased to finalize our strategic alliance with Yunnan Yuntianhua ahead of schedule, thanks to the close cooperative effort of our respective teams, as well as the Chinese regulatory authorities who appreciate the potential value of this joint venture between two leaders of the global phosphate industry. Our YPH JV with Yunnan Yuntianhua provides ICL with access to major phosphate reserves and a strong platform from which to build the leading specialty phosphate business in fast-growing Chinese and Asian markets. It also strongly expresses ICL’s dedication to meeting the essential needs of China’s growing population because the JV will provide specialty fertilizers to China’s large agricultural market, specialty phosphate products to many engineered materials markets as well as food additives for Asia’s fast growing processed food industry. We look forward to continuing our great relationship with Yunnan Yuntianhua to serve these and other burgeoning Asian markets and to improve the profitability of both parent companies.

Click here to read the full Israel Chemicals (NYSE:ICL) press release.