Innophos Reaches New PPA Supply Agreement with Nutrien
Innophos Holdings Inc., Cranbury, N.J., announced on July 2 that it has entered into a three-year Purified Phosphoric Acid (PPA) supply agreement with Nutrien. The new agreement will go into effect on July 30, 2018, and replaces the existing long-term agreement that Innophos had with PCS Purified Phosphates, a unit of PotashCorp of Saskatchewan Inc.
Under the terms of the agreement, Nutrien will continue to supply Innophos with PPA, a key raw material in the manufacture of Innophos’ phosphate product portfolio. Innophos said the third-party supply agreement supplements its own internal PPA production and ensures security of supply, enabling Innophos to continue to serve its customers.
“The new PPA agreement with Nutrien is an important step forward in sustaining Innophos’ leadership position and supporting our commitment to provide our customers with our market-focused specialty phosphate portfolio serving the food, health, nutrition, and industrial specialties end markets,” said Kim Ann Mink, Ph.D., Innophos chairman, president, and CEO. “By securing ongoing access to a high-quality, external supply of PPA from Nutrien, we are able to supplement our internal PPA capacity in order to efficiently serve our valued customer base without interruption. As part of our broader strategic manufacturing optimization initiative, we continue to evaluate additional opportunities to further optimize the security and cost profile of our supply chain over the long-term.”
The original supply agreement with PCS was dated March 23, 2000. In June 2016 (GM July 1, 2016), however, Innophos notified the Securities and Exchange Commission that it had received written notice that PCS Purified Phosphates did not wish to extend the terms of the PPA supply agreement beyond July 29, 2018.