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Fertiglobe partners with AD Ports to foster operations in Egypt, UAE

Fertiglobe partners with AD Ports to foster operations in Egypt, UAE
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Fertiglobe
FERTIGLOBE
2.08% 2.45 0.05
AD Ports Group
ADPORTS
1.17% 5.20 0.06

Abu Dhabi – Mubasher: Fertiglobe signed a non-binding memorandum of understanding (MoU) with AD Ports Group to explore logistics and supply chain opportunities in Egypt and the UAE.

The partnership will see the prospects of storing and shipping urea and ammonia at ports in the two Arab countries, according to a press release.

Fertiglobe and AD Ports will also explore potential collaboration in other geographies as well as the development of supply chain solutions for green ammonia.

By leveraging AD Ports' supply chain capabilities and sustainable modes of inland transportation, Fertiglobe aims to boost its logistics’ cost structure. This aligns with its cost optimisation programme that targets $50 million in recurring annualised cost savings by the end of 2024.

Ahmed El Hoshy, CEO of Fertiglobe, commented: “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.”

“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,” El Hoshy underlined.

“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.”

Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports, commented: “We anticipate that this [partnership] will become a remarkable step towards a greener, more efficient future.”

“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,” Al Shamisi noted.

In the first half (H1) of 2023, the net profits attributable to the owners of AD Ports rose by 2% to AED 617 million from AED 603 million in H1-22.

Fertiglobe logged net profits valued at $279.20 million as of 30 June 2023, an annual plunge from $1.09 billion.