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ICL INDUSTRIAL PRODUCTS – WORLD’S #1 PRODUCER OF ELEMENTAL BROMINE
Using state-of-the-art technologies to refine the world’s most concentrated source of bromine, ICL Industrial Products produces higher-margin bromine compounds such as flame retardants, clear brines for the oil and gas exploration and biocides for water treatment industries. It is also a producer of magnesia and chlorine-based salts. ICL Industrial Products is home to ICL's IMI (TAMI) Institute for R&D Ltd. which conducts R&D activities for ICL and outside clients.
In August 2007, ICL completed its acquisition of Supresta LLC, establishing ICL as a world leader in phosphorus-based flame retardants. Supresta produces more than 80 phosphorus-based products used in industrial applications ranging from flame retardants for polyurethane foam and engineering resins to plasticizers for the plastics industry and functional fluids for power stations. Originally the phosphorus chemicals unit of Akzo Nobel, Supresta operates plants in the U.S. and Germany as well as two R&D and applications centers. It markets its products throughout the world, with particular strength in North America and Europe.
2006 Sales (%)
ICL Industrial Products at a Glance
- 2006 Revenues: $838 million (including ~$11m in internal sales)
- % of ICL Revenues: 24%
- Operating Income: $209 million
- Market Leader: #1 producer of elemental bromine (~one third of global production)
- Major Markets: Western Europe, the US, China, Japan and Taiwan
Products
- Elemental bromine: potential production capacity of 240,000 tons
- Bromine compounds: potential production capacity of 300,000 tons – used for flame retardants, clear brines for the oil drilling industry, soil and space fumigation products, bromine based biocides for water treatment and a wide range of other applications
- Chlorine-based biocides: potential capacity of 30,000 tons
- Magnesia: used in the production of steel for transformers, oil additives and rubber, and as a mineral supplement in pharmaceutical and food products
- Chlorine based salts: used for de-icing roads, dust control and the production of chlorine, cosmetics, foods and catalysts
Market Dynamics
A rise in the selling prices of most of the segment’s products during 2006 and increased biocide sales countered a significant reduction in quantities sold of flame retardants (particularly in Southeast Asia) due to weak electronic markets, together with a reduction in the quantities of brominated inorganic products sold. Sales of agricultural products declined due to a reduction in the quantity of methyl bromide approved for critical uses by the Montreal Protocols.
Competitive Advantages
- Low cost producer of elemental bromine due to direct access to rich Dead Sea resources and industry-leading know-how
- High quality products with leading positions in several key products
- World’s largest fleet of isotanks (special containers necessary for the shipment of bromine) enables the transport of large quantities of bromine throughout the world
- Global marketing network and technical support team customizes new products according to customer specifications
- Supresta acquisition will diversify ICL’s portfolio of flame retardants, enabling it to initiate sales to the polyurethane foam and engineering plastics markets while also enhancing ICL’s geographic marketing reach
Goals/Strategy
- China: expansion of sales, marketing and manufacturing in China
- R&D: development of new products; development of new uses for existing products
- Specialty products: raising the proportion of specialty products in the product mix
- Efficiency: continuous streamlining of all operations and supply chain activities
- Integration of Supresta to realize synergies in operations, marketing and the purchase of raw materials, as well as enhancing R&D capabilities for developing next-generation products utilizing Supresta’s organo-phosphorus technology.