K+S has acquired a 30% stake in fertilizer manufacturer Al-Biariq for Fertilizer Plant Co. Ltd (Al-Biariq) in Saudi Arabia.
A contract to this effect was signed by both companies in Dubai.
Through this purchase, K+S is seeking to participate in the growth in the Middle East, Africa and South Asia, particularly in the fertigation segment.
“In line with our management agenda, we are further strengthening the specialty business in the potash and magnesium products business unit through this investment and can offer an even broader product portfolio in the future,” said Norbert Steiner, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft and Board Member responsible for this business unit.
Al-Biariq is a manufacturer of fully soluble potassium sulfate, which is used for the liquid fertilization of fruit and vegetables, amongst other applications. Al-Biariq’s highly modern production facilities on the Red Sea have an annual capacity of 20 000 t (SOP water-soluble), which is set to double to 40 000 t in the near future.
As part of the agreement, K+S will in future take over the distribution and marketing of the fertilizers produced by Al-Biariq. In addition, K+S has acquired an option to purchase a further 30% in Al-Biariq within two years of completing the transaction (closing), which is scheduled for 2Q17.
K+S produces potassium sulfate fertilizers (including KALISOP®) from natural deposits at the Werra site in Hesse. The synthetically manufactured potassium sulfate (SOP water-soluble) by Al-Biariq in Saudi Arabia provides a welcome addition to the K+S product range with a fully soluble potassium sulfate, which is primarily used in fertigation.
Following the announcement of the acquisition of fertilizer activities in China (Magpower) in July, the investment in Al-Biariq in Saudi Arabia marks another step towards expanding and strengthening the specialty business in the potash and magnesium products business unit this year.
Read the article online at: https://www.worldfertilizer.com/nitrogen/19122016/ks-invests-in-fertilizer-manufacturer-in-saudi-arabia/