08 May 2013 11:35 [Source: ICIS news]
LONDON (ICIS)--European soda ash producer Ciech is looking at expanding its capacity in Poland to 1.4m tonnes/year from 1.2m tonnes/year, the Polish group said on Wednesday.
Ciech would spend zloty (Zl) 230m ($72.8m, €55.6m) on the expansion if it went ahead, group spokesman Mariusz Babula added.
On 26 April, a Ciech source confirmed the company stood ready to sell or liquidate its Romanian and German soda ash operations if restructuring efforts do not sufficiently improve profitability.
Facing demands from the Polish treasury ministry, its controlling shareholder, to stem losses at the group, the company's new management last year took the decision to widen Ciech’s divestment strategy and focus on core production units.
In October last year, this led to Ciech selling assets of its Zachem toluene di-isocyanate (TDI) business to German chemicals giant BASF, with the move spelling the end of the Polish producer's involvement in TDI, due to a non-competition obligation embedded in the deal.
($1 = €0.76, $1 = Zl 3.16, €1 = Zl 4.14)
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