Abu Dhabi, UAE – Fertiglobe (ADX: FERTIGLB), the strategic partnership between ADNOC and OCI Global (EURONEXT: OCI), the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer producer in the Middle East and North Africa (MENA) region, and an early mover in sustainable ammonia, today announced that it has signed a non-binding Memorandum of Understanding (MoU) with AD Ports Group (ADX: ADPORTS), a leading facilitator of global trade, logistics and industry, to explore logistics and supply chain opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE.
The two companies will explore opportunities to leverage AD Ports Group’s state-of-the-art cargo handling and storage infrastructure, as Fertiglobe strengthens its urea and ammonia storage and shipping capabilities, reduces its greenhouse gas (GHG) footprint, enhances operational efficiency and further automates its logistical activities.
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“We are pleased to partner with AD Ports Group, a UAE national champion and a global leader in maritime trade and logistics. Through this MoU we will identify compelling opportunities across our logistics and supply chain management requirements, enabling us to bolster our ability to store and ship urea and ammonia from Egypt and further optimize our logistics’ cost structure. Today, our strategically located production facilities benefit from direct access to international ports and distribution hubs, allowing us to easily access major end-markets and regions with high demand. This MoU will enable us to expand our partnership beyond Egypt and the UAE, as well as to the shipping and storage of green ammonia, in line with our commitment to deliver more sustainable products to the world.”
By capitalizing on AD Ports Group's robust supply chain capabilities and sustainable modes of inland transportation, Fertiglobe seeks to further optimize its logistics’ cost structure, a key component of its recently introduced cost optimization program, targeting $50 million in recurring annualized cost savings by the end of 2024.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, commented:
"In line with the UAE’s wise Leadership’s vision for economic diversification, this partnership cements AD Ports Group’s commitment to driving broader global collaboration and supply chain development for alternative fuels, which contributes to achieving the Group's sustainability objectives. We anticipate that this will become a remarkable step towards a greener, more efficient future. As two homegrown champions, AD Ports Group and Fertiglobe are embarking on this strategic collaboration that holds immense potential. We are pleased that, by leveraging our integrated portfolio and extensive infrastructure and supply chain expertise, Fertiglobe can strengthen its urea and ammonia storage and shipping capabilities.”
Fertiglobe and AD Ports Group will explore potential collaboration opportunities in other geographies as well as the development of supply chain solutions for green ammonia, a hydrogen carrier, with Fertiglobe’s existing operations strategically located near key shipping routes.
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in sustainable ammonia. Fertiglobe’s production capacity comprises of 6.6 million tons of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees and was formed as a strategic partnership between OCI Global (“OCI”) and ADNOC. Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB” and ISIN “AEF000901015. To find out more, visit:www.fertiglobe.com.
About AD Ports Group:
Established in 2006, AD Ports Group today serves as one of the world’s premier facilitators of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world. Listed on the Abu Dhabi Securities Exchange (ADX: ADPORTS), AD Ports Group’s vertically integrated business approach has proven instrumental in driving the emirate’s economic development over the past decade. Operating several clusters covering Ports, Economic Cities & Free Zones, Maritime, Logistics, and Digital, AD Ports Group’s portfolio comprises 10 ports and terminals, and more than 550 square kilometres of economic zones under KEZAD Group, the largest integrated trade, logistics, and industrial business grouping in the Middle East. AD Ports Group is rated A+ by S&P and A+ Outlook Stable by Fitch. For more information, please visit: adportsgroup.com
For additional information on Fertiglobe: www.fertiglobe.com
For additional information, contact:
Fertiglobe Investor Relations: Rita Guindy