Soda Ash Market To Witness A String Of Expansions In The Upcoming Period

Soda Ash market has been furthering with colossal strides in the recent times. A series of expansions are being prognosticated to actuate soon as per various reports.

Lucky Core Industries To Expand Its Production Capacity For Soda Ash

Lucky Core Industries Limited declared the successful licensing and the initiation of functions of the latest expansion project at its Soda Ash manufacturing facility with a 60,000 tons per annum (TPA) capacity based in Khewra, Pakistan.

This development is part of the previous 135,000 TPA expansion project (phase 2) announced by the firm, of which the 75,000 TPA expansion got concluded in 2022.

With the recent commissioning and beginning of functions, the aggregate capacity established for the company's Soda Ash Plant now stands at 560,000 TPA.

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Lucky Core Industries Limited (previously known as ICI Pakistan Limited) is involved in five different businesses, including Soda Ash, Pharmaceuticals, Polyester, Chemicals & Agri Sciences, and Animal Health.

Via these dealings, the firm produces and trades a wide array of products such as soda ash, pharmaceuticals, polyester staple fibre (PSF), nutraceuticals, general and speciality chemicals, animal health products and agricultural products (like field crop seeds, chemicals, vegetable seeds etc.).

Pupuk Kaltim, A Fertiliser Maker In Indonesia Looking For A Significant Expansion

The largest producer of urea fertiliser in Southeast Asia, PT Pupuk Kalimantan Timur (Pupuk Kaltim), is planning on investing a minimum of USD 1 billion in expanding its capacity and constructing a soda ash facility, as per its chief executive.

The Indonesian state-controlled firm is contemplating financing the expansion by undertaking an initial public offering (IPO) or borrowing; however, Rahmad Pribadi, the chief executive, stated that Pupuk Kaltim has also stockpiled cash from the profits made over the last two years.

With major cash on hand and their leverage low, they have several options, as per Rahmad, emphasising the expansion projects were not contingent on the IPO and they have an expansion capacity, with a 40 trillion rupiahs (USD 2.59 billion) debt-to-equity ratio.

State-Owned Enterprise Ministry administrators informed the parliament that Pupuk Kaltim is one of the state companies that would establish an IPO during the current year and plans to sell a 20% share at the offering to grow USD 500 million. According to Rahmad, the IPO will be decided by stakeholders.

Expansion plans of Pupuk Kaltim comprise constructing a fertiliser factory with a production capacity of 660,000 tonnes of ammonia and 1.2 million tonnes of urea in Fakfak, West Papua, which will potentially require more than USD 1 billion.

The construction will begin next year and will likely begin functions in 2027.

The facility will get feedstock gas from the Kasuri block operated nearby by Malaysia's Genting Oil & Gas. Both firms inked a preliminary sales agreement one month ago.

Pupuk Kaltim also hopes to construct an NPK fertiliser plant with a 100,000-tonne capacity in Bontang, East Kalimantan.

The company presently generates ammonia (2.7 million tonnes), urea (3.4 million tonnes), and NPK fertiliser (350,000 tonnes) annually, making it one of the largest producers in the Asia Pacific.

In hopes of its diversification plans, the company will construct a soda ash plant (300,000 tonnes) in Bontang.

Sisecam To Invest In Logistics For Soda Ash Production In The US

Sisecam is all set to invest in a port investment in California paired with Ciner Group in order to fulfil the logistics requirements of its natural soda ash investment in the US that is underway and on the plan at present.

Sisecam's subsidiary, Sisecam Chemicals USA, will become a 50% stakeholder in Denmar US LLC, which will be executing the Stockton Port Management Project.

The project will create a logistics infrastructure which will be employed in possible future exports of the constant investment in soda ash and include a yearly 5 million tons in capacity.

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The Stockton Port investment will likely be operational in 2027, aligned with Sisecam's US investment for natural soda ash, which is scheduled to get commissioned by 2028.

The latest logistics investment will enable Sisecam to assure sustainable growth with the establishment of a proper supply chain network to fulfil the firm's export targets for natural soda ash in the US.

According to the Procurement Resource article Lucky Core Industries (Pakistan),  Pupuk Kaltim (Indonesia), and Sisecam (Turkey) will be making major investments in the soda ash industry for expansions that are lined up and will begin operations in the upcoming years.