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K+S - Smart tactics to avoid dependency on its potash unit

ks-logoK+S, the world's fourth largest supplier of potash, had its shares down in the market. The company has also announced that it would find a new partner to get the positive upward trend in their market position.

"There are growing signs that fertilizer demand is normalizing," the statement made by Norbert Steiner CEO of a German salt miner K+S, positively working to see its success by the end of the fiscal year 2010, although they show concerns over their business in potash pulling the shares down.

The company did stay positive; however, began to question the business of potash, according to Michael Schaefer, an analyst from Equinet. Michael also expects the production cost of the potash units may turn out to be more than what it meant to be.

The slump in the economy has targeted the demand for potash, with the sudden increase in its demand and an abrupt abandonment by various investors.

K+S, being and old player of the game, made every move cautiously compared to its competition in the market. It also managed to purchase Morton Salt from Dow Chemical, which includes its debt at the cost of $1.675 billion making it the largest supplier of salt.