Turkish producer Ciner to build new soda ash plant

18 January 2013 17:31  [Source: ICIS news]

LONDON (ICIS)--Turkish soda ash producer Ciner will invest $1.35bn (€1.01bn) in a new soda ash plant with a nameplate capacity of 2.7m tonnes/year in Kazan, Turkey, to meet increasing global demand, an industry source said on Friday.

"As a result of production cuts by other producers in Europe, total soda ash output [in Europe] will shrink by 2017, so the additional capacity by Ciner will not make the market long," the source said.

The plant will be operational by 2017.

Belgium’s Solvay previously announced in December it would cut costs and production capacities globally.

The company said demand for soda ash in emerging markets, North America, eastern Europe and the Middle East remains satisfactory while western and southern Europe are confronted with challenging conditions of long-lasting poor demand and overcapacity. As a result, Solvay will reduce output over the years, which the source said could be replaced by the additional capacity brought online by Ciner in 2017.

"The European market is expected to grow by 1.5% every year over the next four years, creating extra demand for about 800,000 tonnes of soda ash, while the global market will grow by about 3% per year during the next four years, creating demand for an extra 8m tonnes of soda ash globally."

This means that the additional 2.7m tonnes by Ciner will be soaked up by the increased global demand, the source added.

While demand for soda ash is increasing in the US, in Europe it has declined drastically over the past year. As a result, US sellers will likely export less, which will probably increase demand for material from alternative markets.

($1 = €0.75) 

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