Chemical Company of Malaysia Berhad (CCM) entered into a strategic alliance with The Arab Potash Company PLC to guarantee security of supply of Muriate of Potash (MOP) or Potassium Chloride to ensure the smooth running of CCM’s Fertilizers Division.

MOP is the most common source of potassium used in agriculture and has a high nutrient concentration that is essential for plant growth

CCM Berhad Group Managing Director, Dato’ Dr Mohd Hashim Tajudin said that guaranteeing security of supply is becoming a strategic issue to hedge against volatility in terms of raw material reserves and fluctuating prices.

Dato’ Dr Mohd Hashim hailed the signing of the MOU as a strategic partnership which would help the Group’s efforts in providing high quality fertilizers to meet growing food requirements, locally and internationally.

“MOP raises yields and food value as it improves the quality and flavour of vegetables and fruits. It also increases disease resistance in crops and enhances shipping, handling and storage qualities, thus extending the shelf life.

“I am confident that the continuous supply of MOP by The Arab Potash Company PLC will not only help us to meet and exceed our customers’ expectations but also contribute to the Group’s revenue through our Fertilizers Division which accounts for 30 per cent of our profits last year.

 “This alliance, combined with our expertise and services will help to strengthen our presence as one of the largest compound fertilizer manufacturers in Malaysia. We hope the continuous availability of MOP in the market will also help our local farmers in reaping profitable harvests as a result of the production of high value crops,” said Dato’ Dr Mohd Hashim.

CCM’s Fertilizers Division produces about 20 formulations to cater all crop and soil types in Malaysia and in the region. It exports a wide range of fertilizers to more than ten countries including its main markets in Indonesia, Thailand and throughout Southeast Asia.

CCM has invested RM150 million in its three new plants in Bintulu (to be operational later this year), Medan (in 2009) and Lahad Datu (in 2010) which will increase its fertilizer manufacturing capacity in East Malaysia and Indonesia. Once all three factories are ready for operations, CCM will have a combined capacity of 670,000 tonnes, making CCM the market leader in Malaysia.

CCM is listed on the main board of Bursa Malaysia with a market capitalisation of RM1 billion and is a key player in the fertilizers, chemicals and pharmaceuticals industry.