USA: Expansion Strategy Solvay to Increase Soda Ash and Sodium Bicarbonate Production Capacity
With an aim to meet the growing global demand, Solvay has plans to increase its soda ash and sodium bicarbonate production capacity by 600 kilo tonnes in the USA and 200 kilo tonnes in Bulgaria respectively.
Brussels/Belgium – Solvay will increase its soda ash production capacity by 600 kilo tonnes at its trona-based Green River site in Wyoming, the United States, to meet long-term global demand growth in various applications. The company will also expand its sodium bicarbonate capacity by 200 kilo tonnes in its Devnya plant in Bulgaria, addressing worldwide demand growth for flue gas treatments which improve air quality. The combined investments total 202 million dollars, spread over the next three years.
“Soda ash and bicarbonate are highly cash generative and resilient businesses for Solvay. Against a backdrop of growing global demand, these investments will deliver resilient cash and strong returns,” said Christophe Clemente, President of Solvay’s Global Business Unit Soda Ash & Derivatives. “The Green River capacity increase reinforces our position as a long-term, sustainable supplier for our customers. Our plant is among the best-in-class competitive soda ash assets in the world and is ideally positioned to address global market demand.”
Global soda ash demand is forecast to grow by 10 million tonnes, excluding China, between 2018 and 2030 – with 4 million tonnes between now and 2023. Demand is driven by export markets such as South East Asia, Brazil, the Middle East and Africa for the manufacturing of detergents, flat and container glass, and Latin America for the extraction of lithium. Solvay’s Green River facility produces soda ash from trona, a naturally occurring mineral. The 600 kilo tonnes investment will leverage on the existing infrastructure and is spread over the next three years, with production starting to ramp up by the end of 2021.
Solvay’s sodium bicarbonate capacity expansion by 200 kilo tonnes in Devnya, Bulgaria is part of the existing 75/25 joint operation with Sisecam. The new production line is expected to be operational by the end of 2020. It will produce Solvair sorbents, sodium-based solutions that treat exhaust gases from factories, incineration plants and ships and Bicar Z, sodium bicarbonate buffer for animal nutrition.