AkzoNobel and ICL establish Spanish salt cooperation

AkzoNobel’s Industrial Chemicals business has signed an agreement with ICL Iberia for the manufacture of vacuum salt. The announcement follows a Memorandum of Understanding agreed by the two companies in June 2014. Financial details have not been disclosed.
The salt will be produced as a by-product of ICL’s potassium chloride (KCl) mining activity in Suria, Catalonia, Spain, where production capacity is being extended. Under a long-term agreement, 1.5 million tons of high purity vacuum salt will be produced annually, as well as 50,000 tons of white potash.
ICL will also invest in two salt production units – to be built in two phases – which will have an annual capacity of 750kt each. Salt volumes from the KCl production will be converted into salt for electrolysis application, and specialty grade salt for food, feed and water treatment applications.
“This strategic partnership will enhance our market position and provide our Salt business with a strong foothold in southern Europe,” said Knut Schwalenberg, President AkzoNobel Industrial Chemicals. “As a sustainability leader with salt technology and marketing at our core, we are ideally positioned to work with ICL and ensure that they realize the full benefits of their Suria mine expansion.”
Commenting on the agreements with AkzoNobel, Nissim Adar, CEO of ICL Fertilizers, stated, “We are delighted to create this partnership with AkzoNobel which will bring added value to our activities at ICL Iberia over the long term. This commercial endeavor will also benefit AkzoNobel, which will obtain a reliable source of high quality salt, as well as the environment in the area around our mine in Catalonia, Spain. ICL Iberia is currently expanding its potash production capacity at Suria, and our cooperation with AkzoNobel will allow us to recover additional valuable potash through the production of this specialty salt.”
Nils van der Plas, General Manager of AkzoNobel’s Salt business, explained that the planned collaboration will include a co-operation for the production of industrial salt and dry salt for specialty applications, and a joint operation for the processing and packing of the specialty salt. The first phase is planned to be operational in the first quarter of 2016, while the second phase will be completed by the end of 2017.
The white potash will go to ICL, the industrial salt for electrolysis to AkzoNobel and the salt for specialties to a specialties joint operation. This joint operation (Sal Vesta Iberia S.L.) will own a packaging plant producing high quality specialty salt products for food, feed and water treatment applications. AkzoNobel will market and sell the full volume of salt specialties produced.
The cooperation between AkzoNobel and ICL is subject to approval from the appropriate regulatory authorities.
---