Albemarle Corporation (ALB) |
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Albemarle's Suppliers Performance
ALB's Supply Chain
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ALB Costs vs Sales of Suppliers Growth |
Revenues of Albemarle's Suppliers, deteriorated by -6.05 % compared to the same quarter a year ago, sequentially sales grew by 18.93 %, Albemarle recorded an increase in cost of sales by 88.94 % year on year, sequentially cost of sales grew by 35.67 % in Q4.
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Albemarle's Suppliers realized a deteriorated in sales by -6.05 % compared to the same quarter a year ago, sequentially sales grew by 18.93 %, Albemarle recorded increase in cost of sales by 88.94 % year on year, sequentially cost of sales grew by 35.67 % in Q4.
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News about Albemarle Corporation Contracts |
Albemarle's Comment on Supply Chain
The major raw materials we use in our Refining Solutions operations include
sodium silicate, sodium aluminate, kaolin, rare earths and metals such as molybdenum,
nickel and cobalt, most of which are readily available from numerous independent
suppliers and are purchased or provided under contracts at prices we believe
are competitive. The cost of raw materials is generally based on market prices,
although we may use contracts with price caps or other tools, as appropriate,
to mitigate price volatility.
The bromine we use is sourced from two locations: Arkansas and the Dead Sea.
Our bromine production operations in Arkansas are supported by an active brine
rights leasing program. We estimate that, at current production levels, we will
be able to produce bromine in Arkansas for more than 50 years. In addition,
through our 50% interest in Jordan Bromine Company Limited (“JBC”),
a consolidated joint venture with operations in Safi, Jordan, we source bromine
from the Dead Sea, which is believed to have indefinite quantities of brine.
In addition, we have a joint venture with Weifang Sinobrom Import and Export
Company, Ltd. (“Sinobrom”) in China that allows us the option to
source bromine directly from China’s Shandong Province brine fields.
The major raw materials we use in our PCS operations include aluminum, ethylene,
alpha-olefins, isobutylene and toluene, most of which are readily available
from numerous independent suppliers and are purchased or provided under contracts
at prices we believe are competitive. The cost of raw materials is generally
based on market prices, although we may use contracts with price caps or other
tools, as appropriate, to mitigate price volatility.
We obtain lithium through solar evaporation of our ponds at the Salar de Atacama,
in Chile, and in Silver Peak, Nevada. After we obtain the lithium brine from
the Salar de Atacama, we process it into lithium carbonate and lithium chloride
at a plant in nearby La Negra, Chile. The lithium brine from our Silver Peak
site is processed into lithium carbonate at our plant in Silver Peak. Subsequently,
in other locations in the United States (“U.S.”), Germany, France
and Taiwan, we further process the materials into various derivatives, depending
on the markets we serve. In addition, we have entered an agreement with Bolland
Minera S.A. for the exclusive exploration and acquisition rights to a lithium
resource in Antofalla, within the Catamarca Province of Argentina. If necessary,
we can also obtain lithium from other sources.
Our mineral rights with respect to the Salar de Atacama in Chile consist exclusively
of our right to access lithium brine pursuant to a long-term contract with the
Chilean government, originally entered into in January 1975 by one of our predecessors
and subsequently amended and restated. Our contract with the Chilean government
will remain in effect until the date on which we have produced and sold 200,000
metric tons of lithium in any of its forms from the Salar de Atacama. As of
December 31, 2016, the remaining amount of lithium we were permitted to sell
under the contract equaled approximately 115,000 metric tons of total lithium.
In February 2016, we announced that we were granted approval by the Environmental
Assessment Commission of the Antofagasta Region to increase our currently authorized
lithium brine removal rate in the Salar de Atacama. The size of the area at
the Salar de Atacama covered by our claims is approximately 16,700 hectares.
We currently own the land on which we operate our facility at the Salar de Atacama
and our processing facility in La Negra. However, the ownership of the land
at the Salar de Atacama will revert to the Chilean government once we have sold
all amounts of lithium remaining under our contract with the Chilean government
(the ownership of the land and fixed assets in La Negra will remain unchanged).
In December 2016, we also announced that we amended our lithium production rights
agreement with the Chilean Economic Development Agency (“CORFO”)
to both extend the term of that agreement and increase our authorized lithium
quota at our facility in the Salar de Atacama, Chile. The amended agreement
provides us with sufficient lithium to produce over 80,000 metric tons annually
of technical and battery grade lithium salts over the next 27 years at our expanding
battery grade manufacturing facilities in La Negra, Antofagasta.
Our mineral rights in Silver Peak, Nevada consist of our right to access lithium
brine pursuant to our permitted and certificated senior water rights, a settlement
agreement with the U.S. government, originally entered into in June 1991, and
our patented and unpatented land claims. Pursuant to the 1991 agreement, our
water rights and our land claims, we have rights to all lithium that we can
remove economically from the Clayton Valley Basin in Nevada. We have been operating
at the Silver Peak site since 1966. Our Silver Peak site covers a surface of
approximately 15,301 acres, 10,826 acres of which we own through a subsidiary.
The remaining acres are owned by the U.S. government from whom we lease the
land pursuant to an unpatented land claim and lease agreement which is renewed
annually. Based on our 2016 production levels, we believe that the amount of
lithium brine we can economically obtain from our Silver Peak, Nevada site pursuant
to our rights could support the current levels of lithium carbonate production
for approximately 20 years. Assuming certain operating conditions are satisfied,
our annual lithium carbonate production capacity is estimated to be approximately
6,000 metric tons at our Silver Peak facility. However, no assurance can be
given that the indicated levels of production of lithium carbonate at either
Silver Peak or La Negra will be realized.
We also own a 49% interest in Windfield Holdings Pty Ltd, which directly owns
100% of the equity of Talison Lithium Pty Ltd, a company incorporated in Australia
(“Talison”). Talison, through its wholly-owned subsidiaries, owns
and operates a lithium mine in Greenbushes, Western Australia and mines lithium
ore, which is then milled and processed to separate lithium concentrate from
the rest of the ore. The ore is processed into battery-grade lithium carbonate
and lithium hydroxide at our Jiangxi and Sichuan, China facilities, which were
recently acquired from Jiangxi Jiangli New Materials Science and Technology
Co. Ltd. Talison currently sells the lithium concentrate to its shareholders.
Talison has a leading position in two categories of lithium concentrates: (i)
technical-grade lithium concentrates which have low iron content for use in
the manufacture of glass, ceramics and heat-proof cookware; and (ii) a high-yielding
chemical-grade lithium concentrate, used to produce lithium chemicals which
form the basis for the manufacture of lithium-ion batteries for laptop computers,
mobile phones, electric bicycles and electric vehicles. Assuming certain operating
conditions are satisfied, the annual lithium concentrate production capacity
at the Talison facility is estimated to be approximately 575,000 metric tons.
However, no assurance can be given that the indicated levels of production of
lithium concentrate at Talison will be realized.
Albemarle's Comment on Supply Chain
The major raw materials we use in our Refining Solutions operations include
sodium silicate, sodium aluminate, kaolin, rare earths and metals such as molybdenum,
nickel and cobalt, most of which are readily available from numerous independent
suppliers and are purchased or provided under contracts at prices we believe
are competitive. The cost of raw materials is generally based on market prices,
although we may use contracts with price caps or other tools, as appropriate,
to mitigate price volatility.
The bromine we use is sourced from two locations: Arkansas and the Dead Sea.
Our bromine production operations in Arkansas are supported by an active brine
rights leasing program. We estimate that, at current production levels, we will
be able to produce bromine in Arkansas for more than 50 years. In addition,
through our 50% interest in Jordan Bromine Company Limited (“JBC”),
a consolidated joint venture with operations in Safi, Jordan, we source bromine
from the Dead Sea, which is believed to have indefinite quantities of brine.
In addition, we have a joint venture with Weifang Sinobrom Import and Export
Company, Ltd. (“Sinobrom”) in China that allows us the option to
source bromine directly from China’s Shandong Province brine fields.
The major raw materials we use in our PCS operations include aluminum, ethylene,
alpha-olefins, isobutylene and toluene, most of which are readily available
from numerous independent suppliers and are purchased or provided under contracts
at prices we believe are competitive. The cost of raw materials is generally
based on market prices, although we may use contracts with price caps or other
tools, as appropriate, to mitigate price volatility.
We obtain lithium through solar evaporation of our ponds at the Salar de Atacama,
in Chile, and in Silver Peak, Nevada. After we obtain the lithium brine from
the Salar de Atacama, we process it into lithium carbonate and lithium chloride
at a plant in nearby La Negra, Chile. The lithium brine from our Silver Peak
site is processed into lithium carbonate at our plant in Silver Peak. Subsequently,
in other locations in the United States (“U.S.”), Germany, France
and Taiwan, we further process the materials into various derivatives, depending
on the markets we serve. In addition, we have entered an agreement with Bolland
Minera S.A. for the exclusive exploration and acquisition rights to a lithium
resource in Antofalla, within the Catamarca Province of Argentina. If necessary,
we can also obtain lithium from other sources.
Our mineral rights with respect to the Salar de Atacama in Chile consist exclusively
of our right to access lithium brine pursuant to a long-term contract with the
Chilean government, originally entered into in January 1975 by one of our predecessors
and subsequently amended and restated. Our contract with the Chilean government
will remain in effect until the date on which we have produced and sold 200,000
metric tons of lithium in any of its forms from the Salar de Atacama. As of
December 31, 2016, the remaining amount of lithium we were permitted to sell
under the contract equaled approximately 115,000 metric tons of total lithium.
In February 2016, we announced that we were granted approval by the Environmental
Assessment Commission of the Antofagasta Region to increase our currently authorized
lithium brine removal rate in the Salar de Atacama. The size of the area at
the Salar de Atacama covered by our claims is approximately 16,700 hectares.
We currently own the land on which we operate our facility at the Salar de Atacama
and our processing facility in La Negra. However, the ownership of the land
at the Salar de Atacama will revert to the Chilean government once we have sold
all amounts of lithium remaining under our contract with the Chilean government
(the ownership of the land and fixed assets in La Negra will remain unchanged).
In December 2016, we also announced that we amended our lithium production rights
agreement with the Chilean Economic Development Agency (“CORFO”)
to both extend the term of that agreement and increase our authorized lithium
quota at our facility in the Salar de Atacama, Chile. The amended agreement
provides us with sufficient lithium to produce over 80,000 metric tons annually
of technical and battery grade lithium salts over the next 27 years at our expanding
battery grade manufacturing facilities in La Negra, Antofagasta.
Our mineral rights in Silver Peak, Nevada consist of our right to access lithium
brine pursuant to our permitted and certificated senior water rights, a settlement
agreement with the U.S. government, originally entered into in June 1991, and
our patented and unpatented land claims. Pursuant to the 1991 agreement, our
water rights and our land claims, we have rights to all lithium that we can
remove economically from the Clayton Valley Basin in Nevada. We have been operating
at the Silver Peak site since 1966. Our Silver Peak site covers a surface of
approximately 15,301 acres, 10,826 acres of which we own through a subsidiary.
The remaining acres are owned by the U.S. government from whom we lease the
land pursuant to an unpatented land claim and lease agreement which is renewed
annually. Based on our 2016 production levels, we believe that the amount of
lithium brine we can economically obtain from our Silver Peak, Nevada site pursuant
to our rights could support the current levels of lithium carbonate production
for approximately 20 years. Assuming certain operating conditions are satisfied,
our annual lithium carbonate production capacity is estimated to be approximately
6,000 metric tons at our Silver Peak facility. However, no assurance can be
given that the indicated levels of production of lithium carbonate at either
Silver Peak or La Negra will be realized.
We also own a 49% interest in Windfield Holdings Pty Ltd, which directly owns
100% of the equity of Talison Lithium Pty Ltd, a company incorporated in Australia
(“Talison”). Talison, through its wholly-owned subsidiaries, owns
and operates a lithium mine in Greenbushes, Western Australia and mines lithium
ore, which is then milled and processed to separate lithium concentrate from
the rest of the ore. The ore is processed into battery-grade lithium carbonate
and lithium hydroxide at our Jiangxi and Sichuan, China facilities, which were
recently acquired from Jiangxi Jiangli New Materials Science and Technology
Co. Ltd. Talison currently sells the lithium concentrate to its shareholders.
Talison has a leading position in two categories of lithium concentrates: (i)
technical-grade lithium concentrates which have low iron content for use in
the manufacture of glass, ceramics and heat-proof cookware; and (ii) a high-yielding
chemical-grade lithium concentrate, used to produce lithium chemicals which
form the basis for the manufacture of lithium-ion batteries for laptop computers,
mobile phones, electric bicycles and electric vehicles. Assuming certain operating
conditions are satisfied, the annual lithium concentrate production capacity
at the Talison facility is estimated to be approximately 575,000 metric tons.
However, no assurance can be given that the indicated levels of production of
lithium concentrate at Talison will be realized.
ALB's Suppliers Net Income grew by |
ALB's Suppliers Net margin grew in Q4 to |
163.36 % |
4.19 % |
ALB's vs. Suppliers, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Albemarle Corporation |
15,515.70 |
9,617.20 |
1,670.54 |
6,000 |
Agilent Technologies inc |
43,062.63 |
6,833.00 |
1,240.00 |
18,100 |
Abb Ltd |
87,039.54 |
32,235.00 |
3,824.00 |
0 |
Accenture Plc |
220,720.49 |
64,573.60 |
7,038.47 |
721,000 |
American Superconductor Corp |
375.29 |
125.37 |
-19.11 |
354 |
Amerisafe Inc |
949.45 |
306.50 |
63.71 |
449 |
Ampco pittsburgh Corp |
44.50 |
407.77 |
3.93 |
1,076 |
Air Products And Chemicals Inc |
53,946.70 |
12,600.00 |
2,338.60 |
21,900 |
Ashland Inc |
5,236.21 |
2,191.00 |
178.00 |
11,000 |
Ati Inc |
7,480.65 |
4,173.60 |
423.40 |
9,700 |
Bimi International Medical Inc |
12.73 |
18.09 |
-22.66 |
0 |
Badger Meter Inc |
4,642.06 |
668.01 |
85.42 |
1,514 |
Berkshire Hathaway Inc |
492,047.10 |
349,271.00 |
77,710.00 |
0 |
Cabot Corporation |
5,153.48 |
3,931.00 |
484.00 |
4,300 |
Calumet Specialty Products Partners l p |
1,107.83 |
4,202.70 |
362.70 |
2,000 |
Clearday Inc |
8.09 |
7.54 |
-16.71 |
0 |
Conocophillips |
153,930.13 |
56,141.00 |
10,957.00 |
9,900 |
Chevron Corp |
296,720.60 |
200,949.00 |
21,411.00 |
42,595 |
Danaher Corporation |
185,646.08 |
23,890.00 |
4,764.00 |
80,000 |
Dover Corporation |
24,901.51 |
8,437.63 |
2,326.83 |
25,000 |
Dow Inc |
40,377.03 |
45,860.00 |
1,402.00 |
35,700 |
Employers Holdings Inc |
1,187.37 |
850.90 |
118.10 |
716 |
Emerson Electric Co |
65,023.69 |
15,837.00 |
11,006.00 |
85,500 |
Franklin Electric Co Inc |
4,946.07 |
2,065.01 |
194.73 |
5,200 |
Fluor Corporation |
7,389.00 |
15,573.00 |
123.00 |
37,508 |
Fmc Corporation |
7,994.26 |
4,486.00 |
1,321.00 |
6,400 |
Haynes International inc |
770.05 |
603.80 |
41.94 |
1,123 |
Hillenbrand inc |
3,496.80 |
2,943.60 |
548.10 |
6,000 |
Honeywell International Inc |
137,107.97 |
36,662.00 |
5,672.00 |
99,000 |
Hubbell Inc |
22,352.18 |
5,372.10 |
766.00 |
16,200 |
Idex Corp |
18,383.42 |
3,273.90 |
595.60 |
7,536 |
Innospec Inc |
3,222.27 |
1,963.90 |
126.80 |
1,800 |
Itron Inc |
4,105.22 |
2,172.91 |
98.32 |
6,065 |
Itt Inc |
11,258.13 |
3,283.00 |
413.80 |
9,400 |
Liquidmetal Technologies Inc |
62.74 |
0.51 |
-2.05 |
26 |
Model N Inc |
1,069.78 |
252.71 |
-31.67 |
864 |
Minerals Technologies Inc |
2,438.90 |
2,169.10 |
88.30 |
3,583 |
Mueller Water Products Inc |
2,472.73 |
1,217.30 |
77.30 |
3,900 |
Newmarket Corporation |
6,012.78 |
2,697.51 |
388.86 |
1,998 |
Piedmont Lithium Inc |
230.19 |
0.00 |
-21.78 |
10,400 |
Pentair Plc |
14,187.60 |
4,104.20 |
622.70 |
11,250 |
Ppg Industries Inc |
34,396.82 |
18,246.00 |
1,309.00 |
49,300 |
P10 Inc |
922.91 |
235.80 |
-1.04 |
27,780 |
Rockwell Automation Inc |
33,561.22 |
9,129.00 |
1,112.00 |
26,000 |
Rtx Corporation |
137,628.57 |
68,920.00 |
3,380.00 |
174,000 |
Scully Royalty Ltd |
96.29 |
48.79 |
-17.92 |
0 |
Sunoco Lp |
6,444.56 |
23,068.00 |
824.00 |
22,500 |
Thermo Fisher Scientific Inc |
225,524.53 |
42,857.00 |
5,955.00 |
130,000 |
Trecora Resources |
231.52 |
301.32 |
8.99 |
310 |
Universal Stainless and Alloy Products Inc |
221,452.19 |
261.94 |
-1.41 |
645 |
United States Lime and Minerals Inc |
1,664.92 |
272.36 |
68.35 |
321 |
Vishay Precision Group Inc |
462.45 |
354.34 |
26.01 |
2,600 |
Westlake Corporation |
19,438.34 |
12,548.00 |
522.00 |
8,870 |
Westlake Chemical Partners Lp |
785.42 |
1,190.79 |
334.63 |
141 |
Advanced Drainage Systems Inc |
13,535.65 |
2,443.05 |
504.12 |
4,615 |
Xylem Inc |
27,917.96 |
7,364.00 |
609.00 |
17,300 |
Zurn Elkay Water Solutions Corporation |
5,689.59 |
1,530.10 |
112.70 |
1,300 |
SUBTOTAL |
2,666,866.14 |
1,111,120.74 |
171,447.06 |
1,764,739 |
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