Tel Aviv — Israel Chemicals Ltd.’s (ICL) board of directors has approved a new strategy dubbed “Next Step Forward” to lead the company into the next stage of growth. The plan calls for reducing dependence on potash, balancing the company’s sources of income through diversification, and broadening its global presence. ICL is also planning efficiencies that will lead to a savings of $400 million over three years. ICL plans to list its shares on a major foreign stock exchange. At present, ICL shares are traded only on the Tel Aviv Stock Exchange. ICL is also considering a buyback of shares or the distribution of a one-time dividend of up to $500 million. “The Uralkali announcement creates uncertainty about potash prices and increases the risk of a drop in prices in the short term,” ICL President and CEO Stefan Borgas said. However, he added that the long-term market trend points to higher demand, which will boost prices. He said ICL continues to believe in the potash market, both in the short- and long-term, and will explore options for increasing its potash production both in its existing mines and in new locations around the world. This includes expansion of existing mines in Israel, Spain, and Britain, as well as cooperation with other parties. ICL is also planning investments in phosphate mines, and the company confirmed that teams are currently studying a number of options and investments outside Israel would likely take place even if the government approves mining at the Sde Barir field in the Negev region of Israel. He said ICL will focus its activity in the areas of agriculture and food by increasing its phosphate operations, while simultaneously increasing the company’s position in markets for bromine, phosphorus, and phosphate-based engineered materials.
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