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ICL INDUSTRIAL PRODUCTS – WORLD’S #1 PRODUCER OF ELEMENTAL BROMINE
ICL Industrial Products is a global leader in the production of flame retardants (”FR’s”) and a variety of bromine compounds as well as other chemicals based primarily on rich mineral resources found in the Dead Sea.
ICL-IP sells its products to the electronics, construction and automobile industries and clear brine fluids to the oil and gas drilling industry.
ICL-IP is home to ICL's IMI (TAMI) Institute for R&D Ltd. which conducts R&D activities for ICL and outside clients.
Products
* Based on 2008 external sales
ICL Industrial Products at a Glance
- 2008 Revenues: $1.3 billion (including ~$8m in internal sales)
- % of ICL Revenues: 18% (external sales)
- Operating Income: $136.9 million (adjusted)
- Market Leader: #1 producer of elemental bromine (~35% of global production capacity); #1 producer of
organophosphorus FRs and prominent position in brominated FRs
- Major Markets: Western Europe, US, China, Japan and Taiwan
Production Capacity of Bromine Manufactures in 2008
Source: ICL estimates, US Bureau of Mines, Arkansas Oil & Gas Commission publications
Dead Sea: World's Most Concentrated Source of Bromine
Source: ICL estimates
Product Lines
- Elemental bromine: 35% of the world's production capacity of elemental bromine (potential production capacity of 240,000 tons, increasing to 280,000 tons in 2009)
- Bromine compounds: used for FRs, clear brines for the oil drilling industry, soil and space fumigation products, bromine based biocides for water treatment
- Phosphorus FRs: a global leader of the FR industry
- Chlorine-based biocides
- Magnesia: used in transformers, steel production, rubber and as a mineral supplement in pharmaceutical and food products
Competitive Position
ICL Industrial Products is the world’s largest and lowest-cost producer of elemental bromine, 70% of which is used in its production of higher-margin compounds. It also offers a broad range of bromine-based-FRs which are used primarily in the electronics industry, and organophosphorus-FRs, which are used in furniture, construction and other applications.
The segment also maintains one of the largest fleets of isotanks in the industry which enables it to transport relatively large quantities of bromine throughout the world. It also benefits from a global marketing network and a strong technical support system that works closely with customers.
Industry Trends and Factors
Reduced demand for flame retardants in certain markets: The bromine market is affected by the level of activity in the electronics, construction and oil and gas drilling industries. Very high sales of flame retardants during the first nine months of 2008 have been followed by a sharp drop in sales during the final quarter of 2008, particularly in the electronics and construction industries, as a result of the global financial crisis. Demand from the oil and gas drilling industry remains high.
Reduced competition from China: supply of chemicals produced in China for the oil and gas drilling sector has dropped as a result of increased production expenses, reductions in export incentives and less availability of bromine in China.
Montreal Protocol restrictions: The methyl bromide market continued its downturn in sales due to restrictions in the Montreal Protocol.
Strengthened environmental regulations and drinking water shortages: demand for biocides and water treatment solutions are increasing in step with the adoption of more stringent environmental regulations and the constraint of drinking water supplies.
Environmental Activities
ICL Industrial Products’ recent environmental-related projects include:
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Successful public forum to encourage dialogue and transparency between the company and members of the community related to ICL-IP's health, safety and environmental activities
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Publication of ICL’s first comprehensive, GRI Index-based environmental report, the first by any industrial company in Israel
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Carrying out the planning and licensing phases for a ~$15 million emissions reduction system
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Beginning construction of a $25 million thermal bromine waste recycling system