Solvay aiming at China soda ash chemical alliance

13 May 2004 09:27  [Source: ICIS news]

SINGAPORE (CNI)--Global soda ash major Solvay has signed a letter of intent with Sinopec subsidiary Nanjing Chemical Industries (NCI) aimed at setting up a joint venture to operate NCI’s soda ash plant in Lianyungang, China.

Both parties say they will now embark on detailed feasibility studies with the object of concluding successful negotiations by the end of 2004 and the launching of joint operations in 2005.

Solvay said it regarded the Lianyungang plant as a modern and efficient operation, using the process originally developed by Solvay. Its current annual production capacity is 900 000 tonne/year, meaning it is among the largest soda ash plants in Asia.

If an alliance with NCI is confirmed, Solvay believes its experience, technical know-how and distribution network could substantially enhance the competitiveness of the Lianyungang plant as well as the marketing of its products.

The partners would also seek to increase the plant’s production capacity at a later date and to develop sodium bicarbonate, calcium chloride and other high value-added businesses.

Solvay said the primary objective of the venture would be to serve the soda ash market in China, whose growth is fuelled by China’s potent economic expansion. The alliance would also allow Solvay to complete its export network in the Asia-Pacific region.

Solvay's executive committee chairman Aloïs Michielsen said a tie-up with NCI could become a first step in the implementation of Solvay’s strategy in China.

NCI is one of the large-scale chemical companies belonging to the Sinopec Group. It has a history of more than 70 years in China’s chemical industry, manufacturing more than 200 different products in 6 sectors -chemical fertilisers, inorganic and organic materials, catalysts, chemical fibres and chemical machinery.

Solvay is an international chemical and pharmaceutical group with headquarters in Brussels, employing more than 30 000 people in 50 countries.

By: James Dallmeyer
+65 6780 4359

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