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Israel Chemicals Ltd. (ICL), a Tel Aviv Stock Exchange company, is an Israel-based group with a multinational presence.
ICL’s tightly integrated subsidiaries in Israel, Europe, the Americas and China produce a range of high-quality products – potash, phosphate rock, fertilizers, bromine and bromine compounds (primarily flame retardants), food additives, chemicals for water treatment, and metallic magnesium.
ICL’s competitive advantage stems mainly from a geological wonder: the Dead Sea, a rich source of potassium chloride, bromine, magnesium chloride and sodium chloride, located at the lowest point on Earth. ICL companies also hold rights to mine phosphate rock and limestone in Israel's Negev Desert. Leveraging its concessions to mine minerals from these areas, the company posts annual revenues of nearly $2 billion, and is poised to build strongly on that base.
"We have grown internally, and through acquisitions and joint ventures worldwide," says Akiva Mozes, President and CEO of ICL. "We are maintaining our competitiveness, by paring non-core holdings, streamlining operations, and focusing on our areas of expertise."
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ICL began more than 70 years ago in pre-state Israel, as Palestine Potash Ltd. Most of the ICL subsidiaries were established after Israel was founded in 1948, and the ICL Group was formed in 1968. In the past eight years, the Israel government has privatized ICL, selling shares to the public, and a controlling interest to the Israel Corporation, one of the country’s most prominent public holding companies.
ICL, working through subsidiaries like the Dead Sea Works and Dead Sea Bromine, is now one of the world’s largest producers of potash (9% of global output), and bromine (about 35% of global elemental bromine production). ICL’s Rotem Amfert Negev uses phosphate rock to produce fertilizer, phosphoric acid, and various downstream products.
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ICL is tightly integrated; it turns by-products and waste from one process into raw materials for others. Products are delivered internally, and to its customers through a world-wide transportation and logistics network.
"To keep our competitive edge, we utilize proprietary technologies, the professionalism of our more than 8,500 employees, and TAMI, our world-class in-house R&D institute," Mr. Mozes explains. The company’s strategic acquisitions reflect its international outlook. At the end of 1998, Dead Sea Works acquired Iberpotash of Spain. In 1999, ICL signed three new joint venture agreements in China. ICL also holds a stake in the Chilean chemicals producer, SQM. The Group produces 40% of its output outside Israel, and exports 90% of its products.
"As we grew, we kept a careful eye on efficiency," Mr. Mozes says. "Restructuring to improve efficiency, implemented in 1999, was designed to cut costs $40-50 million a year, and we will continue our efforts to keep expenses in check. In addition, we have divested non-core assets, and this will help us focus on our core business, and further strengthen our balance sheet."
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ICL’s efforts have borne fruit for its shareholders. In 1999, a slow year in chemicals markets, ICL reported record results: Net income advanced 14% to $125.2 million, as sales climbed 4.6% to $1.9 billion. With increasing market value, ICL has maintained a generous dividend policy.
"At ICL, we are keenly aware of our environmental obligations," Mr. Mozes says. "We put great emphasis on complying with environmental regulations, and minimizing the impact of operations on the Dead Sea and the Negev." Israel Chemicals is now developing a strategy, to use the Internet to benefit its clients.
Please visit ICL’s Website at www.israel-chemicals.co.il,
or send a request for information about ICL to elia@israelchemicals.co.il.