Jordan’s APC eyes potash growth in Europe

: Fertilizers
24/09/11

Jordanian potash producer APC has established a new European subsidiary in Zug, Switzerland — APC Trading and Logistics Europe (APC Europe) — to help strengthen and expand its presence in the European market.

The producer aims to increase sales volumes to Europe and enhance its customer service through the new entity, which will manage all stages of sales and logistics including storage, handling, re-shipping and distribution.

It has rented storage facilities at Antwerp in Belgium and Terneuzen in the Netherlands to facilitate this. From these ports, the company can re-ship and distribute its products to customers across Europe, including those in France, Spain, the UK, Ireland, Benelux and eastern Europe using small vessels, river barges and trucks. Additionally, APC has been able to facilitate transshipment operations through these ports to reach even more customers.

APC is already working with major buyers in north and northwest Europe, and has also developed a new European-standard potash grade to meet the specific customer needs.

APC chief executive Dr Maen Nsour emphasised that its new logistical arrangements have meant that the producer can now benefit from shipping large volumes at lower freight costs compared with using smaller vessels, which were typically costlier and more difficult to source. In early September, APC Europe shipped its largest vessel of potash to Europe on the MV Draftvader, which was loaded with 54,800t of fine, standard and granular MOP for Belgium and the Netherlands. Vessel tracking data show that the vessel left Aqaba on 3 September.

APC Europe plans to eventually expand its reach to southern Europe, in collaboration with partners such as the Arab Fertilizers and Chemicals Industries Company.

The establishment of APC Europe shows the company's commitment to the continent. APC has been steadily growing its presence in Europe in recent years and has been diversifying its product portfolio to expand into new markets.

APC chairman Eng. Shihadeh Abu Hdaib noted the importance of the European market as it would help to mitigate risks associated with the current volatile geopolitical climate, and balance the company's global sales. Increased disturbances to commercial shipping in the Red Sea since late 2023 have probably encouraged the company to pivot its focus more to the west. APC loads all of its potash from Aqaba in the northern part of the Red Sea, and freight rates have surged for vessels traversing the Red Sea as a result.

Abu Hdaib also highlighted that its traditional markets have been facing strong price competition because of changes in global trade routes, which also led the company to strategically expand to new markets and regions.

By Julia Campbell

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