TEL AVIV, Israel, October 24, 2011 /PRNewswire/ —

ICL (TASE: ICL), a multinational fertilizer and specialty chemicals company, announced today that it has signed an agreement with SQM, a Chilean company with whom ICL currently owns NUTRISI Holdings (“Nutrisi”), to purchase SQM’s 50% share in Nutrisi, thereby achieving 100% ownership. Nutrisi is a Belgian holding company which is a 50% owner (in partnership with the Norwegian YARA) of NU3, the world’s largest manufacturer of soluble NPK fertilizer components. NU3 owns two large manufacturing plants in Belgium and southern Holland, and sells its products throughout Europe and other global markets.

This transaction is another step forward in ICL’s strategy to become one of the world’s major global Specialty Fertilizer players. It complements additional strategic Specialty Fertilizers acquisitions that ICL carried out previously during 2011, including Everris (previously Scotts Global Pro), a multinational manufacturer and distributor of high-quality specialty fertilizers, including controlled-release, slow-release and soluble fertilizers; and Fuentes Fertilizantes, Spain’s largest manufacturer and distributor of soluble and liquid fertilizers, NPK components and conventional fertilizers. It also follows the announcement by Zuari Rotem Specialty Fertilizers Ltd., ICL’s joint venture operation in India, that it intends to expand the manufacturing capacity of its existing soluble fertilizer manufacturing plant and to establish two additional plants in northern and eastern India.

ICL views the Specialty Fertilizers market as especially strategic for accelerating its growth due to its 5%-8% annual growth rate, which is double the growth rate of conventional fertilizer markets.

Commenting on the news, Mr. Yossi Zidon, CEO of ICL Specialty Fertilizers, said: “This strategic transaction is just one of the steps that we have taken since the beginning of the year to establish ICL as one of the leading global players in the Specialty Fertilizers industry. Sales of Specialty Fertilizers have been growing rapidly throughout the world due to the widespread adoption of advanced agricultural techniques and the industry’s growing environmental needs. As a result, we view Specialty Fertilizers as a strategic market that will help us accelerate our growth over the long term.

“We have therefore been pursuing a number of activities designed to strengthen our Specialty Fertilizer business, including the acquisitions of Fuentes Fertilizantes and Everris. These activities are transforming ICL into a leading Specialty Fertilizers player in Europe and India, while also giving us a uniquely global Specialty Fertilizers marketing, distribution and logistical network.”

In parallel with its expansion activities, ICL continues to seek out ways to rationalize its holdings where possible. Having expanded its internal capabilities in Spain, Nutrisi sold its holdings in Fertilizantes Naturales S.A., a Spanish fertilizer trading company, to SQM.

About ICL

ICL is one of the world’s leading fertilizer and specialty chemicals companies. For a world challenged by population growth and scarce resources, ICL makes products that increase global food and water supplies and improve industrial materials and processes.

ICL produces approximately a third of the world’s bromine and is the 6^th largest potash producer in the world. ICL is a leading supplier of fertilizers in Europe and a major player in specialty fertilizer market segments. One of the world’s most integrated manufacturers and suppliers of phosphate products, ICL has become the world’s leading provider of pure phosphoric acid and a major specialty phosphate player.

ICL is comprised of three core segments: ICL Fertilizers, ICL Industrial Products and ICL Performance Products. Its major production activities are located in Israel, Europe, the US, South America and China, and are supported by major global marketing and logistics networks. ICL benefits from exclusive concessions to extract minerals from Israel’s Dead Sea, a vast source of high-quality and low-cost potash, bromine, magnesium chloride and sodium chloride. ICL also mines phosphate rock from Israel’s Negev Desert and potash and salt from its mines in Spain and the UK.

ICL’s shares are traded on the Tel Aviv Stock Exchange (TASE: ICL).

Forward Looking Statement

This press release contains forward-looking assessments and judgments regarding macro-economic conditions and the Group’s markets, and there is no certainty as to whether, when and/or at what rate these projections will materialize. Management’s projections are likely to change in light of market fluctuations, especially in ICL’s manufacturing locations and target markets. In addition, ICL is likely to be affected by changes in the demand and price environment for its products as well as the cost of shipping and energy, whether caused by actions of governments, manufacturers or consumers. ICL can also be affected by changes in the capital markets, including fluctuations in currency exchange rates, credit availability, interest rates, etc.

PRESS CONTACT

Fleisher Communications and Public Relations
Amiram Fleisher
+972-3-6241241
amiram@fleisher-pr.com

SOURCE ICL – Israel Chemicals Ltd