| Joint Venture to produce 1m tons of soda ash in the Kingdom |
| MENAFN Press - 13/02/2008 |
(MENAFN Press) S&A. Abahsain Co. Ltd. of Saudi Arabia and General Chemical (Soda Ash) Partners of the United States, have agreed to enter into a joint venture to construct a 1 million ton per year soda ash operation in the Kingdom of Saudi Arabia. The plant, which will utilize the Solvay process, will be constructed in two phases, each with a production capacity of 500K MT per year. The first phase is scheduled to commence during calendar year 2010. Salt, limestone, and energy for the plant will be supplied from local sources. Said Mr. Abdullah Salih Abahsain, President of Abahsain Co. Mr. Syed Khawaja Maqsood, the company's Managing Director, said that "S&A Abahsain currently supplies approximately 90% of the estimated 350K MT per year regional soda ash demand through a long-standing buy/resale agreement". Mr. Maqsood added that, "S&A owns 95% of Saudi Arabia's largest glass container company, which is the region's second largest soda ash consumer. General Chemical (Soda Ash) Partners, located in Green River, WY (USA), is the fourth largest global producer of soda ash. Prior to 2001, General Chemical operated a Solvay synthetic process soda ash facility in Amherstburg, ON (Canada), which produced 450K MT per year of light and dense soda ash as well as 400K MT per year of calcium chloride". From his side said Dr. Tariq O. Alfadl - General Manager of Saudi Arabian Glass Co. Ltd., - and Coordinator of the project , that "economic growth in the Gulf Cooperation Council region is expanding very rapidly, which is providing the basis for increased soda ash demand in end use markets such as flat glass, container glass, detergents, and water treatment. The management of S&A and General Chemical believe that the Kingdom of Saudi Arabia is an ideal location for a soda ash operation given the region's rapid demand growth, low energy costs, raw material availability, dependable labor force, attractive financing and other government incentives". It is worth mentioning that this project is of a great strategic value, since it facilitates huge production capacity that will satisfy the projected long-term demands of the Kingdom's various industries, thus limiting the Kingdom's dependency on importing this vital material. It also serves as a key starting point for building an export industry that relies on local raw materials. |
|
||
