ICL Signs $170 Million Specialty Fertilizers Deal in China

ICL, a prominent global specialty minerals company, has entered into a strategic partnership with AMP Holdings Group Co. Ltd., a leading Chinese agricultural distributor. The five-year agreement, valued at approximately $170 million, will bolster ICL's Growing Solutions business and drive expansion in key end markets. This collaboration aligns with ICL's strategic goals and reinforces its position as a key player in the agricultural sector.

The agreement focuses on specialty water-soluble fertilizers tailored for drip irrigation, catering to high-value cash crops like apples, watermelons, vegetables, strawberries, ginger, and grapes. It stipulates a minimum purchase commitment and includes exclusivity conditions related to brand and regional distribution.

In China, the escalating demand for these specialty fertilizers parallels the expansion of high-value crops, thanks to their attractive return on investment. Recent shifts in agricultural practices—prompted by extreme weather conditions, diverse crop varieties, and a diminishing agricultural workforce—have led to a notable rise in drip irrigation usage. This trend has fueled the growing demand for soluble fertilizers, positioning China as the largest global market for fertigation.

Elad Aharonson, President of ICL Growing Solutions, emphasized that ICL's soluble fertilizers are already leaders in the Chinese market, a critical region for the company. He highlighted that the new agreement with AMP Holdings will enhance ICL’s presence in the premium segment of China's specialty fertilizer market. Aharonson expressed satisfaction with AMP’s ongoing partnership and endorsement, reflecting ICL's strong reputation and expertise in specialty soluble fertilizers, which are recognized and valued by one of China’s leading agricultural distribution firms.

Ye Hong, General Manager of AMP Holdings, expressed satisfaction with the expanded partnership with ICL Group, emphasizing the collaboration's focus on delivering innovative specialty solutions to the Chinese market. Hong highlighted that the partnership aims to help farmers optimize their investments and yields through advanced, irrigation-based specialty fertilizers, reinforcing the commitment to enhancing agricultural productivity and efficiency in China.

ICL is dedicated to driving innovation and developing new products for partners like AMP. This commitment is exemplified by their recent launch of a distinctive phosphate and potassium specialty suspension solution designed specifically for drone application—a sector experiencing rapid growth in China. ICL is a renowned global manufacturer of potash fertilizers, playing a crucial role in supporting agricultural productivity.

AMP Holdings has been a trailblazer in distributing irrigation-based specialty products in China for over a decade. As one of the first to recognize the potential of specialty water-soluble fertilizers, AMP established a specialized team of agronomists and sales professionals early on. Their extensive distribution network and strategic partnership with ICL highlight AMP's leading role and superior capabilities in the Chinese market.

This strategic partnership represents a significant milestone for ICL, solidifying its position in the Chinese market. By collaborating with AMP Holdings, ICL demonstrates its dedication to providing innovative agricultural solutions that address the specific needs of the region, further strengthening its market presence.