Mexico: Innophos published 2011 figures

Leading specialty phosphates producer in North America Innophos Holdings manufactures both detergent and food grade pure phosphoric acid (PPA) at their Mexican Coatzacoalcos facilities through the wet process. Now they have release their last year full results for their specialty phosphates business showing that sales were up 28% for all of 2011 versus 2010, with selling prices and volume each up 14%, supported by record sales levels for the specialty ingredient product ranges manufactured in Mexico. Fourth quarter sales were up an even greater 37%, with prices up 21% and volume up 16% versus the fourth quarter 2010. Their detergent grade PPA is used for making STPP and other personal care products, their food grade PPA is geared to the production of specialty ingredients, purchased by pharmaceutical, food, beverage, oral care, and other industrial applications. Mainly due to environmental constraints, the STPP and detergent grade PPA has been reducing their volume in the latest years, in benefit of an increase of the food and technical grade PPA and the specialty ingredients. The latter are mainly focused in ammonium and potassium phosphates, which are sold globally. Operating income at US$22 million for 2011 was more than double the US$10 million recorded in 2010 on higher volume and selling prices that exceeded cost increases.  Most of this favorable variance occurred in the fourth quarter where US$10 million of operating income was recorded against US$2 million in the fourth quarter 2010. The Mexican Innophos operating income margin increased substantially to 18% for the fourth quarter 2011 compared to 5% for the same period in 2010, and showed good improvement for the year at a 12% overall for 2011 compared to a 7% for the previous year. The Mexican PPA constitutes 35% of all the Innophos output and the Mexican specialty phosphates account for 22% of the whole Innophos portfolio. The world industrial phosphate market is a small but important segment of total phosphate demand and accounts for around 6-8% of the global phosphate consumption. Industrial phosphates are growing faster in developing markets such as Latin America and Asia, where demand for convenience foods and beverages, ready-to-use baking mixes, packaged meat, and seafood products is increasing as a consequence of the increasing number and new habits of the middle class consumers.

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