Solvay's US soda ash closing said to bring mkts ‘in line’

HOUSTON (CNI)--The decision by Solvay’s American Soda unit to mothball its Colorado soda ash production is "significant" and will help bring soda ash markets "in line," a high-level industry official said Friday.

The official, who requested he be not named, told CNI today that with Solvay’s mothballing  some 500 000 tonne/year of soda ash will be removed from the market.

He added: "This will help bring the market in line . . .  it will help balance supply and demand."

A Solvay official had told CNI earlier that Solvay expects to mothball within four months American Soda’s soda ash production at its Parachute, Colorado site due to high energy costs and continuing losses. The official would not comment on market impact.

According to another source Parachute has a design capacity to produce 1m tonne/year of soda ash but American Soda has been operating the facility at reduced capacity due to production and energy problems.

Belgium’s Solvay bought American Soda last year from US energy firm Williams.

Solvay’s US operations are based in Houston.