Germany’s K+S buys 30% stake in Saudi Al-Biariq for Fertilizer

German potash miner K+S has bought a 30 percent stake in Saudi Arabia’s Al-Biariq for Fertilizer Plant Co. to capitalize on the growing demand for fertilizer in the Middle East, South Asia and Africa.

K+S will pay between $7 million and $9 million, with an  option to buy a further 30 percent stake within two years of closing the deal, scheduled for the second quarter of 2017, the company said in a statement.

"We are further strengthening the specialty business in the Potash and Magnesium Products business unit through this investment and can offer an even broader product portfolio in the future," K+S Chief Executive Norbert Steiner said in the statement.

Al-Biariq is a manufacturer of fully soluble potassium sulfate, which is used for the liquid fertilization of fruit and vegetables. Al‑Biariq’s has an annual capacity of 20,000 tons of potassium sulfate (SOP water-soluble), which is set to double to 40,000 tons in the near future.

Under the agreement, K+S will eventually take over the distribution and marketing of the fertilizers produced by Al-Biariq.

K+S produces potassium sulfate fertilizers (including KALISOP) from natural deposits at the Werra site in Hesse. In July, the company bought a fertilizer facility in China.