LSB Industries Inc., bowing to pressure from activist shareholder Starboard Value LP, said March 16, that it has retained Spencer Stuart, a prominent global executive search and consulting firm, to launch a search for a president of its LSB Chemical business. This newly created position will be responsible
for maximizing the operational performance of the company’s Chemical business by driving process, maintenance, safety and marketing best-practices throughout the organization.
 
Barry Golsen, president and CEO of LSB, stated, “Over the past several years, we’ve made significant enhancements to our chemical operations by adding new management in key corporate and plant-level positions, augmenting our engineering support and investing in technological and mechanical upgrades
to our facilities. Additionally, we currently have major capital projects underway that will reduce our production costs, expand our capacity and improve our product mix.  Hiring an experienced senior level executive to lead our Chemical business is an important next step in taking the progress we’ve made to the next level in order to drive world class levels of on-stream time, production volume and safety across all of our chemical facilities.  The individual we plan to hire will have a track record of success in managing multi-plant chemical operations, as well as a strong background in managing effective sales and marketing programs. We are pleased to be working with Spencer Stuart, one of the world’s leading executive search firms, to find the ideal candidate.”

The president of the Chemical business will be a member of the company’s senior management team.

Starboard is seeking to name five members to LSB’s ten person board. It has been very critical of LSB management and argued for new management.

A general strike planned for March 12 in Israel to occur in solidarity with workers at Israel Chemicals Ltd. has been called off.  A compromise was worked out by the National Labor Court in Jerusalem whereby the strike was called off in exchange for ICL management freezing all the planned layoffs at Dead Sea Works and Dead Sea Bromine Compounds.  The two sides will conduct intensive negotiations over the next two weeks and report back to the Court. However, workers at Dead Sea Works and Dead Sea Bromine Compounds will continue their strike.

Israeli Prime Minister Benjamin Netanyahu is weighing what to do regarding the strike at Israel Chemicals Ltd. On March 7, he met with the heads of the unions at ICL. Netanyahu told the Israeli Cabinet on March 8 that the Finance Ministry’s Accountant General will conduct a broad examination of the issue of the state’s ‘golden share’ in ICL to review its actions in recent years and its investments in Israel as well as its future plans and the layoffs of workers.
 
Following Netanyahu’s statements the Finance Ministry’s legal advisor sent a letter to ICL CEO Stephan Borgas demanding information on the transfer of ICL activities overseas, including production lines, marketing, knowhow and technology and other activities. The finance ministry also asked whether ICL planned to change the percentage of activities in Israel versus outside of the country.

ICL management said in response that there is no connection to the ‘golden share’ held by the state to the regular management of the company and the need for cutting costs at its subsidiaries in Israel. The statement by management stressed that the streamlining plan adopted by the company is designed to strengthen and safeguard its existing plants in Israel and ensure their competitiveness.

In the meantime, ICL began implementing the layoffs at Dead Sea Bromine Compounds. The strike at the subsidiary as well as at Dead Sea Works is continuing.

The Mosaic Co. said March 9 that it will invest an additional C$1.7 billion into further developing its K3 potash mine project at Esterhazy, Sask. A recently approved change in the scope of the project includes plans to accelerate the production ramp-up of the mine, a decision which will see additional spending and investment in Saskatchewan over the next eight years. During this time, an average of more than 300 skilled contract trades people will be employed at the site, with as many as 600 workers on site during peak construction.

“Mosaic is committed to the growth, efficiency and sustainability of our potash operations here in Saskatchewan,” said Walt Precourt, Mosaic’s Senior Vice-President of Potash. “This is our home and we continue to invest both in our communities and our business.”

The first stage of the K3 Project was approved in 2009, at an investment of C$1.5 billion, as part of Mosaic’s long-term strategy to expand its potash business.

"This is a great announcement and further evidence that Saskatchewan’s diversified economy remains strong," Premier Brad Wall said. "Despite the downturn in oil prices, other sectors continue to show strong growth. This is strong demonstration of their confidence in Saskatchewan’s future."

The K3 site is expected to begin mining potash ore by late 2017. It will serve as a satellite mine for the milling and storage facilities upgraded during the Esterhazy Stage 1 expansion efforts.

Negotiations between Israel Chemicals Ltd. and union representatives broke down late Wednesday. The head of the Dead Sea Bromine Compounds union Avner Ben Senior charged that the talks failed when management insisted on group layoffs.

The talks began yesterday after mediation efforts by Energy and Water Minister Silvan Shalom. Union officials said that following the breakdown of the talks sanctions are expected to be expanded and possibly include other subsidiaries at ICL. Dead Sea Bromine Compounds has been on strike for over a month and Dead Sea Works for nearly two weeks.

Histadrut Labor Federation chairman Avi Nissenkorn today called on Israeli Prime Minister Benjamin Netanyahu who is also serving as acting finance minister to make use of the state’s ‘golden share’ in ICL to prevent the planned layoffs by management.

ICL management said in response that it was surprised to learn from the media that the union had broken off the talks.

Israel Chemicals Ltd. management and unions have returned to the negotiating table. Talks resumed on Tuesday. However, the workers are not ending their strike and are not returning to Dead Sea Works or Dead Sea Bromine Compounds. According to the understanding, the resumption of talks is without preconditions.

ICL said it was acceding to the request of Israel’s Energy and Water Minister Silvan Shalom to resume negotiations with the unions of the two subsidiaries. The strikes at the two plants and the wave of protests which began last month were sparked by management plans to lay off hundreds of workers. The strike at Dead Sea Bromine is entering its fifth week and Dead Sea Works has been shut down for ten days. Preliminary estimates put the damage from the strikes at tens of millions of dollars.

Energy and Water Minister Shalom held a series of talks on Sunday and Monday with the chairman of the Histadrut Labor Federation Avi Nissenkorn, the chairman of ICL and the workers representatives in order to get the talks resumed.