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ICL Continues Global Specialty Fertilizers Expansion With ~$170 Million Distribution Agreement in China

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ICL, a global specialty minerals company, has signed a five-year agreement with AMP Holdings Group in China, valued at approximately $170 million. The agreement, running until 2028, focuses on specialty water soluble fertilizers used in drip irrigation for cash crops. This partnership aligns with ICL's goal to expand its Growing Solutions product offerings and grow in major end-markets.

China has seen increased demand for specialty fertilizers due to the growth of high-value crops and changes in agricultural practices. The country has become the world's largest market for fertigation, driven by the adoption of drip irrigation. ICL's commitment to innovation is evident in their recent introduction of a phosphate and potassium specialty suspension solution for drone application in China.

This agreement strengthens ICL's position in China's premium specialty fertilizer market and underscores the company's commitment to delivering innovative agricultural solutions in response to evolving regional market needs.

ICL, un'azienda globale specializzata in minerali, ha firmato un accordo di cinque anni con AMP Holdings Group in Cina, del valore di circa 170 milioni di dollari. L'accordo, che durerà fino al 2028, si concentra su fertilizzanti speciali solubili in acqua utilizzati nell'irrigazione a goccia per le colture di cassa. Questa partnership è in linea con l'obiettivo di ICL di espandere le sue offerte di prodotti per le soluzioni di crescita e aumentare la sua presenza nei principali mercati finali.

La Cina ha visto un aumento della domanda di fertilizzanti speciali a causa della crescita delle colture ad alto valore e dei cambiamenti nelle pratiche agricole. Il paese è diventato il mercato più grande al mondo per la fertirrigazione, grazie all'adozione dell'irrigazione a goccia. L'impegno di ICL per l'innovazione è evidente nella recente introduzione di una soluzione speciale di sospensione di fosfato e potassio per l'applicazione con droni in Cina.

Questo accordo rafforza la posizione di ICL nel mercato premium dei fertilizzanti speciali in Cina e sottolinea l'impegno dell'azienda nel fornire soluzioni agricole innovative in risposta all'evoluzione delle esigenze del mercato regionale.

ICL, una empresa global de minerales especiales, ha firmado un acuerdo de cinco años con AMP Holdings Group en China, valorado en aproximadamente 170 millones de dólares. El acuerdo, que se extenderá hasta 2028, se centra en fertilizantes especiales solubles en agua utilizados en riego por goteo para cultivos comerciales. Esta asociación se alinea con el objetivo de ICL de expandir su oferta de productos de Soluciones de Crecimiento y crecer en mercados finales clave.

China ha visto un aumento en la demanda de fertilizantes especiales debido al crecimiento de cultivos de alto valor y cambios en las prácticas agrícolas. El país se ha convertido en el mayor mercado del mundo para la fertirrigación, impulsado por la adopción del riego por goteo. El compromiso de ICL con la innovación es evidente en la reciente introducción de una solución especial de suspensión de fosfato y potasio para aplicación con drones en China.

Este acuerdo refuerza la posición de ICL en el mercado premium de fertilizantes especiales en China y subraya el compromiso de la empresa de ofrecer soluciones agrícolas innovadoras en respuesta a las necesidades cambiantes del mercado regional.

ICL은 글로벌 전문 광물 회사로서 중국의 AMP Holdings Group5년 계약을 체결했습니다. 계약 가치는 약 1억 7천만 달러입니다. 이 계약은 2028년까지 진행되며, 현금 작물의 점적 관개에 사용되는 전문 수용성 비료에 중점을 두고 있습니다. 이 파트너십은 ICL의 성장 솔루션 제품 제공을 확대하고 주요 최종 시장에서 성장하는 목표와 일치합니다.

중국은 고부가가치 작물의 성장과 농업 관행의 변화로 인해 전문 비료에 대한 수요가 증가하고 있습니다. 이 나라는 점적 관개 채택으로 인해 세계에서 가장 큰 비료 관개 시장이 되었습니다. ICL의 혁신에 대한 헌신은 최근 중국에서 드론용으로 도입된 특수 인산 및 칼륨 현탁액 솔루션에서 분명히 나타납니다.

이 계약은 중국의 프리미엄 전문 비료 시장에서 ICL의 입지를 강화하고, 지역 시장의 변화하는 요구에 대응하기 위한 혁신적인 농업 솔루션 제공에 대한 회사의 헌신을 강조합니다.

ICL, une entreprise mondiale spécialisée dans les minéraux, a signé un accord de cinq ans avec le Groupe AMP Holdings en Chine, d'une valeur d'environ 170 millions de dollars. Cet accord, qui s'étendra jusqu'en 2028, se concentre sur des engrais spéciaux solubles dans l'eau utilisés pour l'irrigation goutte-à-goutte des cultures commerciales. Ce partenariat s'inscrit dans l'objectif d'ICL d'élargir son offre de produits de Solutions de Croissance et de croître sur les principaux marchés finaux.

La Chine a enregistré une demande croissante d’engrais spéciaux en raison de la croissance des cultures à haute valeur ajoutée et des évolutions des pratiques agricoles. Le pays est devenu le plus grand marché mondial pour la fertigation, soutenu par l'adoption de l'irrigation goutte-à-goutte. L'engagement d'ICL en matière d'innovation est évident dans leur récente introduction d'une solution de suspension spéciale de phosphate et de potassium pour application par drone en Chine.

Cet accord renforce la position d'ICL sur le marché premium des engrais spéciaux en Chine et souligne l'engagement de la société à fournir des solutions agricoles innovantes en réponse aux besoins évolutifs du marché régional.

ICL, ein globales Unternehmen für Spezialmineralien, hat mit der AMP Holdings Group in China einen Fünfjahresvertrag über etwa 170 Millionen Dollar unterzeichnet. Der Vertrag, der bis 2028 läuft, konzentriert sich auf spezielle wasserlösliche Düngemittel, die in der Tropfenbewässerung für Cash-Crops eingesetzt werden. Diese Partnerschaft entspricht ICLs Ziel, sein Angebot an Wachstumsprodukten zu erweitern und in wichtigen Endmärkten zu wachsen.

In China ist die Nachfrage nach Spezialdüngemitteln aufgrund des Wachstums von hochwertigen Kulturen und der Veränderungen in der Landwirtschaft gestiegen. Das Land ist zum weltweit größten Markt für die Düngung durch Bewässerung geworden, bedingt durch die Einführung von Tropfenbewässerung. ICLs Engagement für Innovation zeigt sich in der kürzlichen Einführung einer speziellen Phosphat- und Kalium-Suspension für den Drohneneinsatz in China.

Dieser Vertrag stärkt ICLs Position im Premium-Markt für Spezialdüngemittel in China und unterstreicht das Engagement des Unternehmens, innovative Agrarlösungen anzubieten, die den sich wandelnden regionalen Marktbedürfnissen gerecht werden.

Positive
  • Signed a $170 million distribution agreement with AMP Holdings Group in China
  • Five-year agreement until 2028 for specialty water soluble fertilizers
  • Strengthens ICL's position in China's premium specialty fertilizer market
  • Aligns with ICL's goal to expand Growing Solutions product offerings
  • Responds to increasing demand for specialty fertilizers in China
  • Introduces innovative products like phosphate and potassium specialty suspension for drone application
Negative
  • None.

Insights

The $170 million distribution agreement with AMP Holdings is a significant win for ICL, potentially boosting its revenue and market share in China's growing specialty fertilizer market. This five-year commitment provides stable cash flow and validates ICL's product quality. The $34 million annual revenue from this deal could positively impact ICL's top line, considering the company's 2022 revenue was $10.015 billion. However, it's important to note that this represents only about 0.34% of ICL's annual revenue, limiting its overall financial impact. The agreement's exclusivity conditions could provide a competitive advantage, but investors should monitor how this translates to profit margins and market share growth in China's specialty fertilizer sector.

This deal signifies ICL's strategic positioning in China's rapidly evolving agricultural landscape. The country's shift towards high-value crops and adoption of advanced irrigation techniques presents a substantial growth opportunity. China's status as the world's largest fertigation market underscores the potential for ICL's specialty water soluble fertilizers. The partnership with AMP Holdings, a pioneer in irrigation-based specialty products, gives ICL a strong distribution channel. ICL's innovation in drone-specific fertilizers aligns with China's booming agricultural tech sector, potentially opening new revenue streams. However, challenges such as extreme weather fluctuations and a shrinking agricultural workforce could impact market dynamics. Investors should watch for ICL's ability to adapt to these changes and maintain its competitive edge in this promising but complex market.

Growing Solutions signs agreement with AMP Holdings Group for specialty water soluble fertilizers

TEL AVIV, Israel--(BUSINESS WIRE)-- ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today 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.

About ICL

ICL Group is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company's growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2023 revenues totaled approximately $7.5 billion.

For more information, visit ICL's website at icl-group.com.
To access ICL's interactive CSR report, visit icl-group-sustainability.com.
You can also learn more about ICL on Facebook, LinkedIn, YouTube, X and Instagram.

About AMP Holdings Group Co., LTD

AMP Holdings Group Co., LTD was established in 2003. Relying on the rapid development of the original imported fertilizer business base of ZJAMP GROUP, the registered capital is 550 million yuan. Based on domestic and foreign markets, the company has set up dozens of subsidiaries or offices in major ports and ports across the country, and the business scope covers more than 20 provinces and regions. The annual sales scale of the company exceeds ~13 billion yuan, and the sales performance ranks among the forefront in the field of agricultural materials circulation.

Forward Looking Statements

This announcement contains statements that constitute forward‑looking statements, many of which can be identified by the use of forward‑looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others.

Forward-looking statements appear in this press release and include, but are not limited to, statements regarding the company’s intent, belief or current expectations. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to: estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, positioning, objectives and expectations, general economic, market and business conditions, supply chain and logistics disruptions, energy storage and electric vehicle growth, the potential for new COVID-19 variants, global unrest and conflict, governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, changes in environmental, tax and other laws or regulations and the interpretation thereof, and war or acts of terror and/or political, economic and military instability in Israel and its region, including the current state of war declared in Israel and any resulting disruptions to our supply and production chains. As a result of the foregoing, readers should not place undue reliance on the forward‐looking statements contained in this press release concerning the timing of the transaction, or other more specific risks and uncertainties facing ICL, such as those set forth in the “Risk Factors” section of its Annual Report on Form 20-F filed on March 14, 2024, as such risk factors may be updated from time to time in its Current Reports on Form 6-K and other filings ICL makes with the U.S. Securities and Exchange Commission from time to time.

Forward-looking statements refer only to the date they are made, and the company does not undertake any obligation to update them in light of new information or future developments or to publicly release any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

Investor and Press Contact – Global

Peggy Reilly Tharp

VP, Global Investor Relations

+1-314-983-7665

Peggy.ReillyTharp@icl-group.com

Investor and Press Contact - Israel

Adi Bajayo

ICL Spokesperson

+972-3-6844459

Adi.Bajayo@icl-group.com

Source: ICL Group LTD

FAQ

What is the value of ICL's new distribution agreement in China?

ICL's new distribution agreement with AMP Holdings Group in China is valued at approximately $170 million.

How long is the duration of ICL's agreement with AMP Holdings Group?

The agreement between ICL and AMP Holdings Group is for a five-year period, running until 2028.

What type of products are covered in ICL's agreement with AMP Holdings?

The agreement covers specialty water soluble fertilizers used in drip irrigation for cash crops such as apples, watermelons, vegetables, strawberries, ginger, and grapes.

Why is China an important market for ICL's specialty fertilizers?

China is the world's largest market for fertigation, with increasing demand for specialty fertilizers due to the growth of high-value crops and changes in agricultural practices.

What innovative product has ICL recently introduced for the Chinese market?

ICL has recently introduced a unique phosphate and potassium specialty suspension solution designed specifically for drone application in China.

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