To capitalize on its competitive advantages, ICL is pursuing a focused strategy designed to optimize its operational synergies, expand its production of higher-value downstream products and maximize its cash flow. As part of these efforts, ICL invests continuously in capacity expansion while building out its worldwide presence, marketing and customer support capabilities.

ICL’s strategic work plan is as follows:

Expanding core activities. To ensure continued profitability and strong cash flow, ICL has continued to expand its strategic manufacturing capacity, conversion and debottlenecking programs aimed at increasing its production capacity of potash, bromine and other products, even while it implements far reaching efficiency measures to reduce overall operating expenses. Taking advantage of its virtually unlimited outdoor storage capacity at the Dead Sea, ICL produces potash at high utilization rates, stockpiling inventory even during market slowdowns. Based on planned expansions, potash production capacity is expected to reach 6.5 million tons in 2013. During 2009 ICL also expanded its product basket and geographical spread in the areas of water treatment, hygiene and pharma-cosmetics-gypsum (PCG) through a number of acquisitions.

Engaging in M&A activity. The Company strives to strengthen its core businesses through acquisitions of complementary technologies and auxiliary businesses in high growth sectors. In 2009, ICL completed five acquisitions, primarily in the hygiene and water sectors, reflecting ICL's policy to balance its existing diverse activities with activities that contribute to improving the quality of life in the world. ICL intends to continue leveraging its technological and operational know-how and other capabilities by acquiring businesses that will maximize its competitive advantages, synergies and growth potential.

Penetrating international markets. ICL is focused on strengthening its market position by increasing its global distribution and by adding synergistic products and services in growth areas. This strategy is being implemented through joint ventures and acquisitions. For instance, ICL has established a new water treatment company in China that reflects the integration of its strategic interests: deploying internationally one of its growing operating sectors and thereby balancing ICL's operations with quality of life and environmental quality considerations.

Expanding range of higher value-added product offerings. The Company is working to expand its production and sale of higher value added products through vertical and horizontal integration. This enables growth while strengthening existing capabilities within ICL segments and utilizing significant business synergy advantages. In addition, the Company is expanding its product offerings by adding new products and applications, customizing existing products to meet  new customer specifications and focusing on growth regions and environmentally-friendly activities.

Exploiting synergies. ICL takes advantage of potential synergies among its plants in an effort to increase its efficiency and competitiveness and reduce its production, marketing and logistics costs. The Company is dedicated to identifying potential synergies among its various plants and business segments. This synergy is manifested, among other things, by using waste and by-products of one process as raw material for another process.