Makhteshim Agan

Makhteshim Agan Industries Ltd

Type	Private
Industry	Agribusiness
Founded	1945
Headquarters	Tel Aviv, Israel
Key people	Erez Vigodman, CEO Ami Erel, Chairman
Products	Pesticides Crop Protection Agrochemicals
Revenue	US$ 2.37 billion (2010)
Operating income	$ 147.9 million (2010)
Net income	$ 20.8 million (2010)
Employees	3,937(2010)
Website	ma-industries.com

The Founders of Makhteshim

Makhteshim Agan Plant in Brazil

Makhteshim Agan Industries Ltd (also known as MA Industries, MAI) is the world’s leading manufacturer and distributor of branded off-patent pesticides. Makhteshim-Agan is the world's seventh largest company in the global agrochemical sector with an approximately 5% market share for off-patent proprietary and branded products. In 1997, Makhteshim-Agan became a publicly traded company comprising two veteran companies: Makhteshim (1952) and Agan (1945), both involved in the manufacture of pesticides. In 2011 the company was acquired by ChemChina.

For the year ended 31 December 2010, the company reported revenues of US$2.37 billion.^[1].^[2]

History

In 1944, Zvi Zur and Michael Pikarski established the Agan Cooperative for the development of chemical products for the growing agricultural industry of the fledgling Jewish state. They were later joined by colleagues Israel Tamir and Eliyahu Teomim. In 1954 the cooperative was dismantled and incorporated as a company – Agan Chemical Manufacturers, for the development and production of herbicides. Zvi Zur left Agan and relocated to the Negev where, in 1952, Makhteshim Chemical Works, producer and distributor of insecticides and fungicides, was established with funding from the Nir Company of the Histadrut (Labor Federation).

In 1973, Agan relocated once again to larger facilities in Ashdod, where it remains to this day. In the same year, Agan and Makhteshim established a partnership for worldwide distribution of their products. In 1997, the two companies merged to form Makhteshim Agan Industries Ltd., a major player in the industry that provides food for the world’s population. Since 2000, the company has demonstrated initiative and creativity in its business activities, taking risks that have borne a new era of global expansion.

In October 2011 Makhteshim Agan was acquired by China National Agrochemical Corporation, a subsidiary of China National Chemical Corporation (ChemChina).^[3] ChemChina paid US$2.4 billion to conclude the deal – $1.272 billion to public shareholders and $1.128 billion to Koor Industries.^[4] Prime Minister Benjamin Netanyahu described the deal as "a big achievement for the economy of Israel."^[5] After the deal, ChemChina owns 60% of the company, with Koor retaining the remaining 40%.^[6]

Operations

The group has several manufacturing facilities worldwide with key facilities located in Ramat Hovav, Beer Sheba, Ashdod and Brazil. In addition, the Group has smaller manufacturing facilities in Colombia, Poland, Spain and Greece. Makhteshim-Agan has the largest generic distribution network in the world, comprising 43 marketing firms throughout the companies' markets in Europe, North America, Latin America, Asia, Pacific, Africa and the Middle East.

Products

Pesticides Makhteshim-Agan’s principal area of activity is in the pesticide sector where about 92% of the company’s revenues are generated. The company’s agrochemical product range includes three basic types: herbicides, insecticides and fungicides. These products improve the quality and quantity of crop yields by providing protection from weeds, insects and fungi. In recent years, the Group has increased its portfolio of products and its activities in stable markets.

Non-Agrochemical Products Makhteshim-Agan has exploited its chemical and industrial know-how to develop additional products such as Lycopene (antioxidant), specialty aroma chemicals and other fine chemicals, which account for 8% of the company’s revenues.

Global Presence

North America Bold Formulators Control Solutions Alligare Farmsaver / Quali Pro Quali Pro South America Milenia Agrociencias (Brazil) Agricur Defensive Agricolas (Brazil) Magan Argentina S.A MA Costa Rica Bravo Ag MA Guatemala MANA Canada MANA (USA) Irvita Quena Proficol (Colombia) Asia, Pacific and Africa Agan Chemical Manufacturers (Israel) Makhteshim Chemical Works (Israel) Makhteshim Agan Singapore MA India Agronica (New Zealand) MA Japan MA West Africa (Ghana) Agronica (New Zealand) MAGAN Korea JK Korea MA Thailand MA South Africa MA Australia MA China (Shanghai)

Europe MAUK (UK) Makhteshim-Agan Benelux & Nordic MA Poland MA Espana MA France MA Italia MA Marom (Romania) MA Switzerland Agribul (Bulgaria) Agrovita (Czech Republic) MA Portugal MARUS (Russia) Feinchemie (Germany) MA Hungary MAGAN Agrochemicals (Serbia) Aragonesas Agro (Spain) Alfa Agricultural Supplies (Greece) MAGAN Italia MA Hungary MA Ukraine Kollant (Italy) Lycored Agan Aroma & Fine Chemicals

Endosulfan

Makhteshim Agan of North America (MANA), located in North Carolina, is the only U.S. producer of endosulfan, an organochlorine pesticide.^[7] The company markets the pesticide under the names Thionex 50W and Thionex 3EC. The United States Environmental Protection Agency announced in June 2010 that it would be banning endosulfan and was in discussions with Makhteshim Agan about discontinuing its manufacture. The director of global governmental and industry relations for the company stated "MANA continues to disagree fundamentally with EPA’s conclusions regarding endosulfan.”^[8] A global ban on the use and manufacture of endosulfan is being considered under the Stockholm Convention.^[9] MANA made its last production run of Endosulfan in 2010, and it should last for two more years. MANA will then stop selling the product, and will not make anymore Endosulfan.

See also

Companies portal

• Economy of Israel
• Science and technology in Israel

External links

• MA Industries website
• Makhteshim website
• Agan website
• MA Industries YouTube Channel
• Crop Life International
• European Crop Protection Association
• Crop Life America

References

1. ^ Financial Report, FY 2010. "Financial Report, December 31st, 2010". Makhteshim Agan. http://www.ma-industries.com/finance/fin2010/Annual_Report2010_eng.pdf. 
2. ^ Dun's 100 - Israel's Largest Enterprises 2009 - Company Profile, Dun & Bradstreet, http://duns100.dundb.co.il/ts.cgi?tsscript=comp_eng&duns=531879856, retrieved 2009-10-13 
3. ^ Yeshayahou, Koby (17 October 2011). "ChemChina completes Makhteshim Agan buy". Globes. http://www.globes.co.il/serveen/globes/docview.asp?did=1000690660&fid=1725. Retrieved 18 October 2011. 
4. ^ Hazani, Golan (17 October 2011). "ChemChina transfers $2.4B for Makhteshim merger". Ynetnews. http://www.ynetnews.com/articles/0,7340,L-4135968,00.html. Retrieved 18 October 2011. 
5. ^ Ackerman, Gwen (17 October 2011). "Netanyahu Congratulates IDB’s Dankner on Makhteshim Deal Close". Bloomberg Businessweek. http://www.businessweek.com/news/2011-10-17/netanyahu-congratulates-idb-s-dankner-on-makhteshim-deal-close.html. Retrieved 18 October 2011. 
6. ^ "Makhteshim Agan, ChemChina complete record $2.4b. merger". Jerusalem Post. 17 October 2011. http://www.jpost.com/Business/BusinessNews/Article.aspx?id=242139. Retrieved 18 October 2011. 
7. ^ Cone, Marla. EPA Bans Pesticide Found on Cucumbers, Zucchini, Green Beans and Other Vegetables. The Daily Green. June 10, 2010.
8. ^ Martin, David S. EPA moves to ban DDT cousin. CNN. June 10, 2010.
9. ^ "SUMMARY OF THE FOURTH MEETING OF THE PERSISTENT ORGANIC POLLUTANTS REVIEW COMMITTEE OF THE STOCKHOLM CONVENTION". Earth Negotiations Bulletin 15 (161). October 20, 2008. http://www.iisd.ca/vol15/enb15161e.html.