Şişecam’s US Move Set to Secure Global Leadership

Şişecam takes a major step toward global leadership in soda ash, acquiring Ciner Group's full stake in its U.S. soda investment and operations.

Şişecam, a global player in glass and chemicals, has advanced its position in the soda ash market. Şişecam has agreed with its U.S. partner Ciner Group to acquire Ciner Group's entire stake in Sisecam Chemicals Resources LLC and Pacific Soda LLC. 

Through this agreement, Şişecam's stake in Pacific Soda LLC, which operates in the U.S. and upon completion will produce 5 million tonnes of natural soda ash annually, has risen to 100%. Its stake in Sisecam Wyoming LLC, which operates actively in Wyoming, has increased to 51%. This facility, with the remaining 49% owned by U.S.-based NRP Trona LLC, has annual natural soda production capacity of 2.5 million tonnes in Wyoming. 

Şişecam will pay Ciner Group a total of USD 285,389,000 for the share transfer. With this strategic move, Şişecam will move closer to world leadership in soda ash and natural soda ash. Positioning natural soda ash as a significant area in its portfolio due to multiple sustainability advantages including production costs, carbon footprint, and water consumption, Şişecam will reach total global soda ash production capacity exceeding 10 million tonnes upon completion of its ongoing investments. Currently ranking among the top 3 soda ash producers globally with 5 million tonnes of production capacity, Şişecam will become the world leader in these sectors with total soda ash production capacity exceeding 10 million tonnes, comprising 7.5 million tonnes of natural soda ash, upon completion of the 5 million tonne-capacity Pacific project it now fully owns.

Soda ash, a strategic material that supplies inputs to numerous sectors alongside glass production, continues to grow on a global scale. Global soda ash demand, which stood at 66 million tonnes in 2023, is expected to reach 83 million tonnes by 2030, growing at an annual average rate of 3%. The share of natural soda ash, currently at 30%, is projected to reach 40% over the next decade. 

Şişecam Chief Executive Officer Görkem Elverici made the following statement regarding the U.S. investment:

"As the world faces major uncertainties, companies can succeed to the extent that they can manage their portfolios with a holistic approach, anticipate expectations while closely monitoring market dynamics, and quickly reflect them in their plans. We have decided to increase our investments in natural soda ash production, which stands out with its multiple sustainability benefits including carbon footprint and water consumption, along with its production cost advantages, in the growing soda ash market within our managed portfolio. 

With this decision, we are advancing toward global leadership in soda ash production and natural soda ash production. We do not see the potential of soda ash limited to the sectors it currently supplies. We continue our R&D efforts on a global scale and through multiple collaborations in the direction of soda ash providing input to new and different industries, particularly batteries for energy storage purposes which are rapidly growing.

We are continuing the successful business partnership we have maintained with Ciner Group for 5 years in the Stockton port operations project currently under construction in the U.S., and we will continue to create value together in this area. While Şişecam steadily demonstrates the necessary management to meet today's developments and requirements, it will also effectively continue its growth journey through strategic and structural steps that anticipate future expectations."

Şişecam's U.S. Soda Ash Investment Journey

•    In 2019, became an equal partner in the Pacific Soda Project, a 2.5 million tonne natural soda investment to be developed by Ciner Group.
•    In 2021, became a 60% partner in Ciner Group's operating 2.5 million tonne natural soda capacity Wyoming facility and the Atlantic Soda Project, a 2.5 million tonne natural soda investment to be developed. 
•    In the same year, increased its stake in the Pacific Project to 60% and through the merger of the Atlantic and Pacific Projects, the Pacific Project became a single investment project targeting total natural soda production of 5 million tonnes.
•    In 2023, became an equal partner with Ciner Group in the Stockton Port Operations with total 5 million tonne capacity to logistically manage U.S. soda ash production capacity.