Australia’s IPL to Acquire Indonesian Fertilizer Plant

Australia’s Incitec Pivot Limited’s (IPL) coal gasification plan, the construction of a refinery to turn coal into gas, is seen as lucrative. And IPL’s plans have led to speculation that the company intends to acquire the Aceh fertilizer plant. Incitec Pivot is a leading global explosives company. It has operations in Australia, Asia and the Americas. We estimate its share of the global commercial explosives market to be about 15%. Explosives contribute 80% of EBITDA. Inciec Pivot is also a major Australian fertilizer producer and distributor. It is also the only manufacturer of ammonium phosphate and urea in Australia. Ammonium phosphate is sold in the domestic market and exported. Indonesian Industry Minister Fahmy Idris noted that IPL may acquire the Aceh ASEAN Fertilizer Plant. IPL and Pusli Fertilizer Plant and Transformation Industries Ltd (Rekin) have joined forces to explore building a plant to supply three local fertilizer plants. namely the Iskandar Muda I and II plants, and the gas required for the Aceh ASEAN Fertilizer Plant (AAF). Fahmy welcomed the coal gasification plan. As it will enable the Aceh fertilizer plant to increase its production to its maximum capacity. “IPL is a fertilizer industry, but in addition to producing fertilizer, […]