A POTASH firm is embarking on a global expedition to target premium markets as it bids to “stop the bleeding” caused by hundreds of job losses, The Northern Echo can reveal.

ICL UK is working with potential customers across Asia, the US and South America on new fertilisers.

Bosses say the venture will provide fresh stimulus as its traditional potash stock comes close to exhaustion.

The business, based at Boulby, east Cleveland, earlier this week revealed 140 posts, mainly those of miners, are expected to go by Christmas as dwindling reserves and falling market prices hinder progress.

Around 350 people, made up of ICL staff and contractors, left months ago, and officials previously warned a similar number would need to be released when traditional supplies are fully expended.

However, the company, which is applying to extend the mine’s operational licence by 40 years, is ramping up work on the multi-nutrient fertiliser polyhalite, which it markets as polysulphate.

The firm, known locally as Cleveland Potash, is already producing polysulphate and is building a plant to process the mineral on a larger scale, with bosses holding ambitions of extracting and handling a million tonnes by 2020.

However, Peter Smith, potash executive vice president, said commodity work will not be enough, revealing the company’s technical and marketing teams are working relentlessly to make new blends and push the products out to potential customers.

Speaking exclusively to The Northern Echo, he said it was targeting business in at least 40 countries.

He said: “We are starting a new market off, so we have to develop demand.

“You have got to sell small quantities to small farmers to prove it works and you need multiple growing seasons for people to show some confidence.

“You also need the simple things like word of mouth; farmer A gets some good results and tells farmer B.

“It takes a while but we have made a lot of progress and we think we can ramp it up to one million tonnes and will see where it goes from there.

“If we can do it faster we will.

“We can’t afford, in a small market, to produce and wait to sell, we’ve got to produce to sell.

“We are selling it into many countries in small parcels; we are trying to sell it everywhere and build its name up.”

Mr Smith said the focus on what he calls boutique areas, would be critical to ICL’s polysulphate future.

He said: “If you can create a little product that has a speciality in a certain crop and if that crop takes off, that might be one we create.

“Boutique fertilisers can command premium prices.

“We have got to be smart about this; if we just try to produce commodity we are going to do it harder.

“We need to diversify the use of this product to make it successful.”

Mr Smith admitted ICL’s changes have come quicker than anticipated, but asked for understanding from workers and the community, saying market prices have driven the business into tough decisions.

He added: “It is an imbalance between supply and demand; it’s a classic marketing conundrum.

“The whole industry knows the situation.

“The industry will contract its build programme and put operations on the backburner and reduce production and ultimately correct itself, but the timing of that is really unknown.

“We are on a journey and we are genuine about trying to create a future but we are businessmen and we have to do our jobs.

“This (latest job announcement) just stops the bleed and we are prepared to build the business.

“However, we can’t burn cash here, so there has to be a sensible approach.

“It’s a hard pill for people to swallow and I genuinely feel for them.

“But, if we stick to our guns, we will be successful and someone’s kids or grandkids will hopefully reap the rewards.”