04 January 2011 14:13 [Source: ICIS news]
LONDON (ICIS)--Turkish holding company CINER Group is planning to open a new 2m tonne/year soda ash plant in Kazan in 2013, a company source said on Tuesday.
The move comes after the group recently purchased Rio Tur, a Turkish subsidiary of Rio Tinto, which owns 900m tonnes of feedstock trona reserves in the Kazan region of Turkey.
CINER already owns 74% of producer Eti Soda, which runs the world’s second-largest soda ash facility, a 1m tonne/year unit in Ankara, Turkey, which is expected to expand by a further 1m tonnes by 2013.
“This will be good for Europe,” a source at Eti Soda said. “It will be a boost for the [downstream] glass and detergent industries, giving them a stable and reliable source of material,” the source added.
Buyers agreed, with one saying that the long-term gain could be fairly large, although it would depend on the quality of material produced by the new plant.
Players recently said that material was becoming scarce, with one producer saying that all of its plants were sold out for the year already.
Both buyers and sellers said that 2011 prices were settling at between $10-20/tonne (€7.50-15/tonne) higher than those seen last year, due largely to raw material cost hikes.
($1 = €0.75)
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