K+S | Company Structure Information from ICIS

Please see Dow gets clearance to sell Morton to K+S, can now pay loan on ICIS news.

In April 2009, K+S agreed to acquire Morton Salt from Dow Chemical for $1.675bn (€1.27bn). The deal is expected to close by mid-2009. (For more on this story please go to ICIS news).

The company is split up into the following business segments:

Potash and magnesium products

The potash and magnesium products business segment extracts potash and magnesium salts at six mines in Germany. The vital minerals contained in these natural raw materials, such as potassium, magnesium and sulphur, are then processed to produce high-grade mineral fertilizers as well as intermediate products for the manufacture of various industrial products.

Its potash and magnesium fertilizers are used by farmers worldwide to produce food more efficiently.

Nitrogen Fertilizer

Compo

In the consumer area, the Compo business segment offers a range of high-quality speciality fertilizers and plant care products. They include, for example, patented slow-release lawn fertilizers, quality potting soils with root activators or two-phase fertilizers for balcony and house plants.

In the professional area, Compo is used for crops such as grapes, vegetables and fruits and it is also used on public green areas and sports turf.

Fertiva

K+S’s marketing and distribution operation relating to nitrogen agricultural fertilizers is managed in the Fertiva business segment. In addition to light, water, air and other nutrients such as potash and magnesium, nitrogen is used for healthy plant growth; nitrogen is also referred to as the “motor of plant growth”.

The business segment markets the agricultural fertilizers produced exclusively for K+S by BASF. In addition, Fertiva also trades products bought from other well-known manufacturers to a limited extent.

Salt

The salt business segment comprises of Esco and SPL, as well as further subsidiaries in Germany and abroad. Esco operates three rock salt mines in Germany, three brine plants and seven plants processing evaporated salt in Germany, France, the Netherlands, Portugal and Spain, a sea salt compounding plant in Portugal as well as distribution sites in Europe.

SPL extracts rock salt by means of open-cast mining at Salar Grande in Chile and operates a sea salt facility in Brazil through the company Salina Diamante Branco. In the US, SPL distributes salt products through International Salt Company (ISCO).

Waste management and recycling

The company supplies services for waste management and recycling systems.

Services and trading

Various activities of functional importance for K+S are bundled in the services and trading business segment. They primarily consist of services such as logistics, IT and analysis that are used by all business segments.