IFFCO plans $200m injection in Senegal acid maker

11 February 2008 15:02  [Source: ICIS news]

MUMBAI (ICIS news)--A consortium led by Indian Farmers Fertiliser Cooperative (IFFCO) plans to invest $100m, provide a loan of a similar amount and raise the production capacity of phosphoric acid at debt-ridden company Industries Chimiques du Senegal (ICS) up to 50% by May 2009 from its present 30%, a senior IFFCO official said on Monday.

“The consortium plans to increase the production capacity of ICS plant to 90-95% by the end of 2011,” US Awasthi,  the company's managing director, told ICIS news.

India is facing a skyrocketing of international phosphoric acid prices, from around $566/tonne CFR (cost, insurance and freight) to perhaps as high as 1,000/tonne CFR for 2008 contracts.

International prices for phosphate had been rising and increasing production at the ICS plant should ease them, Awasthi said.

“At present we have submitted the business plan for the revival of ICS to the Senegalese court and are awaiting their verdict to carry the project forward,” he said.

IFFCO plans to restructure the underperforming ICS - based in the west African country of Senegal - which has been in financial dire straits for the last five years.

“The consortium plans to start injecting funds in ICS by the end of March 2008,” he added.

By: Isha Jha
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