Arab Potash Company Reaches Historic Milestone with Largest-Ever Shipment to Europe
The Arab Potash Company (APC) has achieved a historic milestone by exporting its largest-ever shipment of potash to Europe. In early September 2024, the MV "Draftvader" was loaded with 54,800 metric tonnes of potash, destined for Belgium and the Netherlands.
APC Chairman, Engineer Shihadeh Abu Hdaib, expressed immense pride in this achievement, attributing it to the company's continuous efforts in expanding through innovation, research, and the development of new products while exploring non-traditional markets. He emphasized that APC is steadily growing its global footprint, delivering high-quality, diverse products to various markets in alignment with its strategic goals of growth and maximizing returns by targeting high-yield markets.
Engineer Abu Hdaib advised that over the past five years, APC has implemented numerous strategies and capital projects that have significantly enhanced its competitive edge in the global fertilizer industry, enabling the company to enter new markets.
Engineer Abu Hdaib highlighted the importance of establishing a strong presence in the European market, as it helps balance APC's global sales, thus mitigating risks associated with the current volatile geopolitical climates.
Chairman Abu Hdaib noted that APC's traditional markets are currently facing intense price competition due to shifts in global potash trade routes. In response, APC has strategically expanded its focus to new markets and regions.
According to Eng. Abu Hdaib, the increase in APC's exports to Europe has not only boosted Jordan's exports but has also positively impacted the national trade balance. As one of Jordan's largest contributors to foreign currency reserves and state revenue, APC plays a crucial role in the country's economy, significantly contributing through taxes, fees, and mining royalties. The company is also deeply involved in community development, positively impacting the regions in which it operates.
Dr. Maen Nsour, President and Chief Executive Officer (CEO) of APC and the CEO of APC Europe, attributed the company’s success in solidifying its position in the European market to the close cooperation and coordination with the major buyers in North and Northwest Europe, understanding their needs and APC’s ability to develop new grades of potash that cater to the specific needs of these customers, including the European standard grade. APC has also introduced innovative logistics solutions, enabling it to reach a wide range of customers across Europe, where sales returns are notably high.
Dr. Nsour emphasized that to better serve the diverse needs of European customers, particularly those who are difficult to reach through conventional logistics ways, APC has established new logistical arrangements, including renting storage facilities at the major European ports in Belgium and in the Netherlands. This initiative has allowed APC to ship large quantities at lower freight costs compared to smaller vessels. Furthermore, it allowed the company to efficiently sell to the large customers present in these ports and to store and re-ship and distribute its products from the Belgian and Dutch ports to customers across Europe, including customers in France, Spain, the UK, Ireland, Benelux, and East 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.
Dr. Nsour indicated that in 2024, APC established APC Europe, “APC Trading and Logistics Europe AG,” with the aim of strengthening its presence in Europe, increasing sales in this key region, and enhancing customer service. This new entity will manage all aspects of storage, handling, re-shipping, sales and distribution as currently the case in Northwestern Europe, and eventually in Southern Europe, in collaboration with partners like the Arab Fertilizers and Chemicals Industries Company (KEMAPCO).
Dr. Nsour mentioned that the efforts made by the Arab Potash Company in Europe are expected to increase sales volumes in this market. The products of the Arab Potash Company have been well received in the new European markets due to their high quality and the high quality of services the company provides to its customers there. He further emphasized that the company is collaborating with the relevant Jordanian authorities to meet the European market's requirements for production using renewable energy, ensuring that the Arab Potash Company maintains its competitiveness and continues to expand in this market.
Mr. Rashid Lubani, Vice President for Marketing and Sales at APC and the Chief Operating Officer of APC Europe, emphasized the company’s agility in navigating various markets, allowing it to capitalize on high-return opportunities.
Mr. Lubani reaffirmed APC's commitment to maintaining a long-term presence in Europe, emphasizing that the company will deliver top-quality products to the European buyers, meeting all environmental and sustainability standards, while ensuring a reliable supply of potash across the continent. He added that APC's strong customer base in Europe, developed over recent years, will be crucial in driving the company's continued growth in this important market.
