Solvay Acquires AGC’s Stake in Wyoming Soda Ash Venture, Simplifies EssentialCo

Solvay SA of Belgium says that it is acquiring AGC’s 20% stake in the Solvay Soda Ash Joint Venture (SSAJV) in Wyoming for a cash purchase price of US$120 million. The joint venture was created by the two companies in 1992. The SSAJV facility, operated by Solvay, producces soda ash and sodium bicarbonate from trona and supplies a broad range of industries, including the glass, chemicals, detergents, and food industries.

Philippe Kehren, president of Solvay’s Soda Ash and Derivatives business, said, “The acquisition of AGC’s stake in the JV simplifies our portfolio and is an attractive opportunity to enhance and further reinforce our business and a future independent EssentialCo. Increasing our supply of trona-based soda ash is directly aligned with our sustainability ambitions to bring lower-carbon-intensive soda ash to the market…Expanding our U.S. trona-based capacities will support in a cost-effective manner our ability to meet growing demand in the Americas and in Asia.

EssentialCo will comprise Solvay’s current chemicals segment, which includes soda ash, peroxides, silica, phenol, solvents, and nylon intermediates, as well as the fluorine chemicals and rare earths business, under the company’s previously announced plan to separate into two independent companies.

Solvay reported first quarter 2022 sales for its Chemicals segment of €1.04 billion (US$1.08 billion) compared with €791 million (US$825.0 million) in the first quarter of 2021. Soda ash and derivatives sales were up 32.0%, at €485 million (US$506.0 million). The company says that successful implementation of price increases and surcharge actions more than offset rising energy costs, and demand remained solid.

Volume 36, Issue 10

Leave a Reply