ISTANBUL, Dec. 27, 2024 (GLOBE NEWSWIRE) -- Sisecam takes a significant step toward global leadership in soda ash industry by acquiring all shares of its partner Ciner Group in the U.S. soda investments and operations.
Sisecam, a global player in the glass and chemicals industries, has taken another significant step toward global leadership in soda ash industry by acquiring all shares of Ciner Group, in Sisecam Chemicals Resources LLC and Pacific Soda LLC in the U.S.
With this agreement, Sisecam's ownership in Pacific Soda LLC has increased to 100%. Pacific Soda LLC manages the ongoing natural soda ash investment in the U.S., which will produce 5 million tons of natural soda ash per annum upon completion. Additionally, Sisecam's stake in the actively operational Sisecam Wyoming LLC has risen to 51%, with the remaining 49% owned by the U.S. based NRP Trona LLC. This Wyoming facility has an annual natural soda ash production capacity of 2.5 million tons.
Sisecam will pay a total of 285 million 389 thousand USD to Ciner Group for its shares. This strategic step brings Sisecam closer to becoming the global leader in soda ash and natural soda ash. Sisecam, positioning natural soda ash, which stands out with its multiple sustainability advantages, particularly in terms of production cost, carbon footprint, and water consumption, as a key area in its portfolio. Upon the realization of its ongoing investments, Sisecam's total global soda ash production capacity will go beyond 10 million tons.
Today, Sisecam ranks among the top three global soda ash producers with a production capacity of 5 million tons. Once the Pacific project, with its 5-million-ton capacity, is completed, Sisecam will achieve global leadership. Its total production capacity will exceed 10 million tons, of which 7.5 million tons will be natural soda ash.
Soda ash, essential for glass production and numerous other industries, continues to grow globally. In 2023, global soda ash demand reached 66 million tons and is expected to grow at an average annual rate of 3%, reaching 83 million tons by 2030. The share of natural soda ash, which is currently 30%, is projected to increase to 40% over the next decade.
Sisecam CEO Gorkem Elverici commented on the investment decision in the U.S.: "In a world filled with uncertainties, companies are navigating a period where success depends on the ability to manage portfolios holistically, closely monitoring market dynamics, anticipating expectations, and swiftly integrating them into plans. Within our portfolio, we have decided to increase our investments in natural soda ash production, which stands out with multiple sustainability advantages including lower carbon footprint and reduced water consumption, as well as cost-efficiency. This decision marks significant progress toward our global leadership in both soda ash and natural soda ash production. We see the potential of soda ash not limited to the industries that it currently serves. Through our global-scale R&D efforts and collaborative partnerships, we are exploring its applications in rapidly growing sectors, particularly in energy storage, such as batteries. Our successful five-year partnership with Ciner Group continues to create value in the ongoing Stockton Port Management project in the U.S. Sisecam remains committed to addressing today's agenda and requirements with determined management approach while effectively pursuing strategic and structural steps that anticipate the needs of the future."
Sisecam's Journey in U.S. Soda Ash Investments
- In 2019, Sisecam became an equal partner in the Pacific Soda Project, a 2.5-million-ton natural soda ash investment developed by Ciner Group.
- In 2021, Sisecam acquired a 60% stake in Ciner Group's operational Wyoming facility, with an annual capacity of 2.5 million tons of natural soda ash, and a 60% stake in the Atlantic Soda project, a 2.5-million-ton natural soda ash investment under development.
- That same year, Sisecam increased its stake in the Pacific Soda Project to 60% and consolidated the Atlantic project under the Pacific project, creating a single investment targeting a total capacity of 5 million tons of natural soda ash.
- In 2023, Sisecam became an equal partner with Ciner Group in the Stockton Port Management project, managing logistics for a total capacity of 5 million tons.
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