KASSEL, GERMANY: K+S AG has signed an agreement to acquire a 30 percent stake Al-Biariq for Fertilizer Plant Co Ltd (Al-Biariq), a fertiliser producer in Saudi Arabia.
Through this deal, K+S is seeking to participate in the growth of the Middle East, Africa and South Asia, particularly in the fertigation segment (use of fertilisers in irrigating systems).
Al-Biariq is a manufacturer of fully soluble potassium sulphate, which is used for the liquid fertilisation 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 tonnes (SOP water-soluble), which is set to double to 40,000 tonnes in the near future.
As part of the agreement, K+S will in future take over the distribution and marketing of the fertilisers produced by Al-Biariq. Additionally, K+S has acquired an option to purchase a further 30 percent in Al-Biariq within two years of completing the transaction (closing), which is scheduled for the second quarter of 2017.
K+S produces potassium sulphate fertilisers (including KALISOP) from natural deposits at the Werra site in Hesse. The synthetically manufactured potassium sulphate (SOP water-soluble) by Al-Biariq in Saudi Arabia provides a welcome addition to the K+S product range with a fully soluble potassium sulphate, which is primarily used in fertigation.
Following the acquisition of fertiliser activities in China (Magpower), this investment in marks another step for K+S towards expanding and strengthening the speciality business in the potash and magnesium products business unit this year.
“In line with our management agenda, we are further strengthening the speciality 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.
Read More: K+S acquires 30 pc stake in Saudi’s fertiliser producer
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