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. ICL is expanding production and capacity of key ICL Fertilizers products as a result of increased demand and a rise in their profitability arising from changes in global agriculture, the rapid development of emerging economies and emerging demand for biofuels.

As a result, in March 2008, ICL Fertilizers announced plans to increase production of phosphate rock by 500,000 tons during 2008 through utilization of current excess capacity. Beginning in 2009, the company will increase its production of potash by 250,000 tons a year by increasing carnallite production capacity beginning in 2009. It will also increase potash production capacity at the Dead Sea by an additional 250,000 tons gradually through 2011 by implementing technological improvements and opening bottlenecks in existing plants. Production is also being increased by approximately 300,000 tons a year at ICL's potash mines in Spain and the UK by upgrading equipment at these mines.

 In addition to these increases, depending upon conditions in the fertilizer market, the company is considering plans to increase potash production capacity at the Dead Sea by an additional one million tons over a period of 5 to 8 years and phosphate rock production to reach full capacity utilization of 4.5 million tons, and phosphate rock capacity by an additional 600,000 tons by 2010. ICL Fertilizers is also considering a plan to increase capacity of fertilizer grade phosphoric acid P₂0₅ by approximately 40,000 tons annually and will gradually increase its capacity of phosphate fertilizers by 250,000 tons during the next four years.

Enhancing penetration of international markets. ICL is focused on strengthening its penetration of international markets, specifically growth markets such as China, where ICL has launched a number of joint ventures for manufacture of products in the past few years.

 ICL has made significant progress in these efforts. ICL Performance Products has become a vertically-integrated Specialty Phosphates powerhouse, as a result of our milestone acquisition of the assets of Astaris, a major US-based Specialty Phosphates manufacturer and marketer, and through an acquisition of a Brazilian food ingredient company. These synergistic transactions have transformed ICL Performance Products into a segment with over $1.1 billion revenues (2007), and have given it an exceptional ability to provide customized solutions to customers in all world markets. During 2007, the company  continued its structural reorganization plan with the goal of further expanding ICL Performance Products’ revenues and improving its profitability. In parallel, ICL Industrial Products, and ICL Fertilizers’ specialty units have stepped up their development of new applications and overall marketing efforts.  

Carrying out synergistic acquisitions. Over the past several years, ICL has carried out a number of acquisitions, such as ICL Performance Products’ purchase of the assets and business of Astaris LLC, Biogema, Fire-Trol and the water treatment business unit of the Henkel Group. The goal of  ICL Industrial Products’ acquisition of Supresta LLC is to expand and diversify its product portfolio and addressable markets, enhance its geographic reach, optimize its costs and fully leverage  its assets. The Company continues to seek out synergistic acquisition opportunities as a key to its future growth and profitability.