ADAMA opens advanced chloralkali facility, strengthening market position and environmental commitment

Date:11-08-2024

ADAMA Ltd. (SZSE 000553), a global leader in crop protection solutions, announced the opening of its new chloralkali production facility. This state-of-the-art plant will supply essential components for the company's highly regarded active ingredients, Captan and Folpet, used for fungicides to protects crops worldwide.

The facility, which has been under construction since 2021, represents a significant investment and highlights ADAMA's commitment to sustainable practices and increased production efficiency. The facility was built at a cost of tens of millions of dollars and incorporates advanced technology to boost capacity while reducing environmental impact.

Hadran Olami, ADAMA's Head of Global Manufacturing: "This new facility strengthens ADAMA's independence and reliability in chlorine production while providing a major capacity boost. The advanced technology allows us to produce chlorine up to 40% more efficiently, reducing energy consumption and ensuring a safer, more sustainable process. This positions ADAMA to continue delivering essential crop protection products to our customers while meeting stringent environmental standards."

The chloralkali plant utilizes cutting-edge membrane cell technology, replacing the company's mercury-based system. This transition not only eliminates the risks associated with mercury, but also significantly improves energy efficiency. The plant is expected to produce 40,000 metric tons of chlorine annually, with the ability to scale up to 50,000 metric tons as demand grows. This represents a substantial increase from the previous plant's capacity of around 27,000 tons per year.

In addition to boosting production, the new facility enables ADAMA to utilize the hydrogen generated as byproduct to fuel its air emission treatment system, replacing fossil fuels and reducing its carbon footprint. Moreover, the new facility supports strategic infrastructures companies in Israel, such as the electricity and water companies, by supplying chlorine and its byproducts, including caustic soda and sodium hypochlorite.

ADAMA is in early-stage assessment of integrating a solar field near the plant to power its operations. This initiative would enable the company to generate "green chlorine," further aligning with its environmental goals.

ADAMA's new chloralkali facility is now fully operational, providing enhanced supply security, increased capacity, and significant energy savings. With this state-of-the-art plant, ADAMA is better positioned to meet the needs of its global agricultural partners while reducing its environmental footprint.