Israel Chemical’s Industry

Israel’s chemical industry has played a major role in the country’s economy and has established Israel in some areas as one of the leading chemical-producing nations of the world. The industry can be divided into several areas: refining and petrochemicals; fertilizer, products based on Israel’s natural resources; agricultural agrochemicals, pharmaceuticals and biotechnology, various chemicals such as paints, cleaning materials and cosmetics (based largely on the mud and minerals from the waters of the Dead Sea).

Dead Sea

 

 

Highlights

 

• Israel’s chemical industry’s annual turnover in 2008 experienced an unprecedented increase, to $25 billion, a result of an increased demand for many services and products and a tremendous rise in prices, at the first half of the year, of petroleum, refined materials, fertilizers and various by products. This figure includes $4.5 billion in pharmaceutical exports.
• A major factor in the expansion of the chemical industry can be credited to Israel Chemicals Industries (ICL) and its subsidiaries, with its innovative accomplishments in fertilizers and by-products based on raw materials, such as phosphate, potash and bromine.
• Another strong company is Makhteshim Agan Industries, the world’s leading producer of generic agrochemicals.
• The first facilities for the production of pharmaceuticals were established in the 1930’s. Several small pharmaceutical companies combined to form Teva Pharmaceuticals in 1952.
• Today, environmental legislation efforts are being supported by the chemical industry both in Israel and abroad.  
• Investments relevant to environmental issues are estimated at over $200 million annually mostly in the chemical sector of the industry.

• Israel’s chemical Industry employs over 30,000 workers.

 

Background

·         Israel’s chemical industry began formally at the beginning of the last century, when efforts were made to extract potash and later bromine from the Dead Sea.

·         By 1946, the manufacture of potash fertilizers had begun in Haifa and with the establishment of the State, the new government sponsored several state-owned companies to mine raw materials and process their derivatives. In 1952, the Dead Sea Works was founded, followed by the Dead Sea Bromine Company in 1955. Chemical production for export purposes on large scale began in the 1960’s.

 

Minerals and Fertilizers

·         Dead Sea Works produces around 3.5 tons of potash annually, together with ICL worldwide facilities, producing almost 10% of the world’s requirements.

·         In a joint venture with Volkswagen, ICL produces 40,000 tons of magnesium annually.

·         Israel is one of the world leaders in the production of white phosphoric acid.

·         Haifa Chemicals, with two production facilities, is the largest producer of Potassium Nitrate in the world.

·         Efforts began in 2006 to reopen Timna mines in the Negev in order to produce pure copper, with a goal of producing over 20,000 tons annually.

Bromine, Refined Oils and Petrochemicals

·         Bromine, produced in the Dead Sea area is the cheapest source of bromine available worldwide. There are also plants for the production of bromine compound for plastics, electronics, furniture and textiles, as well as products based on bromine which is used for soil fumigation, water treatment and drilling equipment.

·         ICL’s bromine production plant at the Dead Sea in Sodom has a production capacity of about 250,000 metric tons of bromine a year and is the largest single bromine production facility in the world.

·         There are currently two oil refineries in Israel producing refined products for local and foreign consumption. Petrochemical production, based on these refineries, produce raw materials for the local plastics industry.

·         Other petrochemical facilities produce aromatic products and intermediates for the chemical industry.

Pharmaceuticals

·         Teva Industries is the largest generic pharmaceutical company in the world with a history of successfully introducing several groundbreaking drugs to the market, such as Copaxone for the treatment of MS.

·         Other outstanding companies, some of which are listed on international stock exchanges, include Dexxon, Taro and Perrigo which has production facilities in Israel.. Like Teva, most of the drugs produced by these companies are exported worldwide.

·         In the area of biotechnology, Israel has tens of small companies working on products in different development stages. Many have already reached the production stage.

Cosmetic Industry

·         There are more than 100 cosmetic manufacturers certified by the Ministry of Health in Israel.

·         The turnover for the cosmetics and cleaning sectors reaches $1 billion annually, of which 17% is for export.

·         Exports of Israeli cosmetic products have grown by 30% annually.