Chile SQM To Open Plant In Brazil, Mulls Entering India-Report

Sociedad Quimica y Minera de Chile SA (SQM, SQM-B.SN), one of the globe's leading fertilizer and specialty chemical producers, will expand into Brazil and is evaluating setting up shop in India, the company's chief executive was quoted as saying Friday by daily newspaper El Mercurio.

SQM, which is the global leader in iodine and lithium production, expects to initially open up a 40,000 metric ton per year fertilizer plant in Brazil and eventually expand capacity, SQM CEO Patricio Contesse told the paper, without providing a timeline.

As the global population inexorably rises so does the appetite for products SQM provides, such as specialty fertilizers used in agriculture or lithium, a key component of technology like laptop computers, mobile phones and electric car batteries.

SQM's expansion responds to that growing demand and is evidenced by global diversified mining company BHP Billiton Ltd.'s (BHP, BHP.AU) recent $38.6-billion bid for fertilizer company Potash Corp. of Saskatchewan Inc. (POT, POT.T). Potash, which has a 32% stake in SQM, rejected the offer.

"Brazil is what is most urgent right now," Contesse said, adding that in the future the company would likely build a plant in India and elsewhere in the Far East.

SQM representatives weren't immediately available for comment.

-By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; [e-mail]