IFFCO inks MoU with JPMC to set up a plant in Jordan

New Delhi, Feb 1 (UNI) To expand its global presence, fertilizer major IFFCO today signed an MoU with Jordan Phosphates Mines Company (JPMC) for setting up a state-of-art phosphoric acid plant in Southern Jordan.

As part of its strategy of backward integration plan to meet its essential feedstock requirement of Phosphoric Acid, Mr Walid Kurdi, Chairman, JPMC and Dr US Awasthi, MD, IFFCO has signed the MoU at Amman, Jordan.

In this new venture, IFFCO and its associates will have a 52 per cent stake, while the JPMC and its associates will hold 48 per cent.

The plant and associated facilities are estimated to cost 350 million US dollars with a capacity of 1,500 tonnes of phosphoric acid per day.

Utilities and other related facilities would be located adjacent to Eshydia Mine in Jordan.

Acid produced by the joint venture shall be sold internationally or used by IFFCO in its plants in India.

The total phosphate demand in the country is about 5.2 million tonnes of P2O5 whereas total production is only 4.2 million tonnes of P2O5. This leaves a gap of about one million tonne of P2O5 in demand and availability.

India imports 2.6 million tonnes of finished Phosphoric Acid (P2O5 ) from other countries whereas its indigenous production is only about 1.2 million tonnes of P2O5. The joint venture will help in bridging the gap between demand and supply, having a subduing influence in the international prices.

Both the companies have ample experience of successfully operating joint ventures on global level and have affirmed their keenness to put this plant on stream in record time for which a Feasibility Study is being commissioned.

The JV symbolizes the IFFCO's thrust in international cooperation in the field of fertilizer.

IFFCO, globally acclaimed largest producer and seller of fertilizer in cooperative sector, has already successfully set up joint ventures in Oman, Egypt and Senegal. The cooperative also holds major stake in General Insurance, IFFCO Tokio General Insurance Company, and Power Sector on the domestic front.

IFFCO, a society, wholly-owned by cooperatives, possesses the state of art fertilizer production facilities at Kalol, Kandla, Phulpur, Aonla and Paradeep in India.

The society is eyeing on an annual turnover of Rs 15,000 crore (3,400 million dollars) by the year 2010.

UNI