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FeedsHome: Issue 1 2010 › Regenerating growth
Regenerating growth
29/01/2010 | Channel: Manufacturing
Havinv survived a tough 2009, ICL Fertilizers Europe is looking to develop its supply chain for optimised delivery to its agricultural clients
Divided into the three core divisions of fertilisers, industrial products and performance products, ICL is one of the world leading fertiliser and speciality chemical companies with exclusive concessions to extract minerals from Israel’s Dead Sea and the Negev Desert. ICL Fertilizers is a leading producer of potash and an integrated supplier of a variety of value-added products based on phosphate rock, phosphate fertilisers, phosphoric acid, speciality fertilisers and feed phosphates. Utilising access to copious amounts of low-cost potash
reserves and almost unlimited stock piling capacity at the Dead Sea, it is the largest fertiliser producer in Europe. The European division, established in 2002, manages potash mines in Middlesbrough in the UK and Suria in Spain, with fertiliser production units in Amsterdam and Germany, and a feed -phosphate operation in Turkey. The extensive knowledge it holds in the fertiliser industry also makes it an ideal provider of logistics and supply chain services, with the group operating Mifalei Tovala, one of Israel’s largest inland transportation companies.
“Over 95 per cent of our customers are European based with France and Germany being the biggest agricultural areas,” Cees Langeveld, chief executive
officer and president of ICL Fertilizers Europe outlines. “We are predominantly focused on the production and deliverance of fertilisers though we also have some involvement in other fields from the group perspective. This includes performance and industrial products such as speciality phosphates, alumina and other chemicals, but fertilisers are where our expertise lies. The only other area where we are rendering services is in the field of logistics since the fertiliser business requires efficient transportation and we are in a positive position for this kind of negotiation.”
ICL Fertilizers Europe endeavours to maintain supply chain efficiency through the utilisation of relatively cheap modes of transport. Transporting goods by sea vessels is the mode of choice for the majority of the company’s operations, especially for the gaining of raw materials from Israel. Access into Amsterdam, which is the central distribution centre for Europe’s production sites and direct customers, is achieved through the use of the city’s premier canal and waterworks system. ICL Fertilizers has a privately owned jetty in this area that has the capability to receive vessels with loads of up to 65,000 tonnes.
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Improvement of the supply chain is an ongoing focus for the company in order to optimise costs, and the establishment of further distribution points is essential in creating a Just-In-Time production model, as Cees explains: “We try to be as close to the customer as possible and sometimes rent depots for the quick transfer from barge to truck in order to facilitate this. We also look to combine cargoes and optimise freight from different production units to the same client; amalgamating for example, fertilisers from Amsterdam and potash from Cleveland to offer a more efficient service. We have seen an increasing demand for Just-In-Time delivery, especially from our farming clients who have suffered in the economic crisis. This type of customer is ruled by the weather and the seasonality of the agricultural industry, which means that we are often overrun by orders when the weather improves in one particular area. The financial downturn also meant that some people were sat on stocks of high devaluation, and clients are keen to not be in such a volatile position again.”
Indeed, 2009 proved to be a hard year for ICL Fertilizers Europe with the consumption of fertilisers depleting greatly throughout the course of the year. However the company is beginning to see a revival in the market with prices reduced by almost 50 per cent compared to its peak in 2008. Consumption is also starting to regenerate with the recognition from the farming market that it cannot survive exclusive of fertilisers for much longer without an impact on its yield. There is still nervousness in the market regarding stocks and last minute orders have become a definitive trend, though after a year of turbulence, 2010 is set to stabilise ICL Fertilizers interests.
Following a time where emphasis was placed on the maintenance of cash flow, persistent investment is planned for both the supply chain and logistics side of the business, and the production and distribution units. The organisation benefits greatly from the exploitation of in-house logistics, as it remains in control at every stage, from sourcing the raw product, through production, to delivery to the satisfied end customer.
“For the future we can expect a physical improvement in warehousing closer to customers as Just-In-Time becomes increasingly important for our consumer base. The rest of our investment will go into the managerial side of our supply chain, looking to logistics planning and delivery optimisation utilising advanced IT software. Moreover, after a challenging 2009 we are hoping to make a number of internal developments and launch a series of value added products throughout the course of the next few years. We have a definite aim to achieve higher output when it comes to our fertilisers by producing more tailor made products for our customers and developing our logistics systems further,” Cees concludes.
ICL Fertilizers Europe
Employees: 2000
Products: Fertilisers
reserves and almost unlimited stock piling capacity at the Dead Sea, it is the largest fertiliser producer in Europe. The European division, established in 2002, manages potash mines in Middlesbrough in the UK and Suria in Spain, with fertiliser production units in Amsterdam and Germany, and a feed -phosphate operation in Turkey. The extensive knowledge it holds in the fertiliser industry also makes it an ideal provider of logistics and supply chain services, with the group operating Mifalei Tovala, one of Israel’s largest inland transportation companies.
“Over 95 per cent of our customers are European based with France and Germany being the biggest agricultural areas,” Cees Langeveld, chief executive
officer and president of ICL Fertilizers Europe outlines. “We are predominantly focused on the production and deliverance of fertilisers though we also have some involvement in other fields from the group perspective. This includes performance and industrial products such as speciality phosphates, alumina and other chemicals, but fertilisers are where our expertise lies. The only other area where we are rendering services is in the field of logistics since the fertiliser business requires efficient transportation and we are in a positive position for this kind of negotiation.”
ICL Fertilizers Europe endeavours to maintain supply chain efficiency through the utilisation of relatively cheap modes of transport. Transporting goods by sea vessels is the mode of choice for the majority of the company’s operations, especially for the gaining of raw materials from Israel. Access into Amsterdam, which is the central distribution centre for Europe’s production sites and direct customers, is achieved through the use of the city’s premier canal and waterworks system. ICL Fertilizers has a privately owned jetty in this area that has the capability to receive vessels with loads of up to 65,000 tonnes.
')";>Improvement of the supply chain is an ongoing focus for the company in order to optimise costs, and the establishment of further distribution points is essential in creating a Just-In-Time production model, as Cees explains: “We try to be as close to the customer as possible and sometimes rent depots for the quick transfer from barge to truck in order to facilitate this. We also look to combine cargoes and optimise freight from different production units to the same client; amalgamating for example, fertilisers from Amsterdam and potash from Cleveland to offer a more efficient service. We have seen an increasing demand for Just-In-Time delivery, especially from our farming clients who have suffered in the economic crisis. This type of customer is ruled by the weather and the seasonality of the agricultural industry, which means that we are often overrun by orders when the weather improves in one particular area. The financial downturn also meant that some people were sat on stocks of high devaluation, and clients are keen to not be in such a volatile position again.”
Indeed, 2009 proved to be a hard year for ICL Fertilizers Europe with the consumption of fertilisers depleting greatly throughout the course of the year. However the company is beginning to see a revival in the market with prices reduced by almost 50 per cent compared to its peak in 2008. Consumption is also starting to regenerate with the recognition from the farming market that it cannot survive exclusive of fertilisers for much longer without an impact on its yield. There is still nervousness in the market regarding stocks and last minute orders have become a definitive trend, though after a year of turbulence, 2010 is set to stabilise ICL Fertilizers interests.
Following a time where emphasis was placed on the maintenance of cash flow, persistent investment is planned for both the supply chain and logistics side of the business, and the production and distribution units. The organisation benefits greatly from the exploitation of in-house logistics, as it remains in control at every stage, from sourcing the raw product, through production, to delivery to the satisfied end customer.
“For the future we can expect a physical improvement in warehousing closer to customers as Just-In-Time becomes increasingly important for our consumer base. The rest of our investment will go into the managerial side of our supply chain, looking to logistics planning and delivery optimisation utilising advanced IT software. Moreover, after a challenging 2009 we are hoping to make a number of internal developments and launch a series of value added products throughout the course of the next few years. We have a definite aim to achieve higher output when it comes to our fertilisers by producing more tailor made products for our customers and developing our logistics systems further,” Cees concludes.
ICL Fertilizers Europe
Employees: 2000
Products: Fertilisers
