Şişecam will make a port investment in California together with Ciner Group to meet the logistics needs of its natural soda ash investment in the USA.
Şişecam decided to invest in this new business area with Ciner Group to meet the future logistics needs of its natural soda ash investment in the USA, which is currently underway and on schedule.
Şişecam Chemicals USA, a subsidiary of Şişecam, will become a 50% shareholder of Denmar US LLC which will execute the Stockton Port Management Project.
This project will set up a logistics infrastructure for use in potential future exports of the ongoing soda ash investment and feature an annual capacity of 5 million tons.
The Stockton Port investment is scheduled to start operations in 2027, in parallel with Şişecam’s natural soda ash investment in the United States, which is planned to be gradually commissioned by 2028.
This new logistics investment will help Sisecam secure sustainable growth by establishing a supply chain structure to achieve the company's natural soda ash export targets in the USA.
Prof. Ahmet Kırman (pictured below), Şişecam Chairman and Executive Member of the Board of Directors, said: “In 2021, we announced our decision to strengthen our presence in the USA in the field of natural soda ash. The growing natural soda ash market and steadily increasing demand clearly demonstrates that this was the right decision.
"Today, natural soda ash production is one of Şişecam’s most profitable business areas. We are planning a gradual commissioning of the 5-million-ton annual capacity of natural soda from the Pacific Project, which is currently underway and on schedule for completion gradually by 2028.
“At that time, the total production capacity of the Şişecam-Ciner partnership in the USA will climb to 7.5 million tons per year. Multi-port access is key to reducing the cost of accessing international markets, facilitating management of the operation, and eliminating risks arising from the supply chain.
“As a result, we decided to partner with the California-based Stockton Port Management Project, for which Denmar US LLC has already completed the required permit and license process. The Stockton Port Management Project is planned to expand its annual capacity from 3 million tons in 2027 to 5 million tons by 2029.”
Prof. Kırman said three main strategic factors support this investment decision: “The new port operation will provide the necessary logistics infrastructure for the export activities of Şişecam’s USA natural soda ash investment. Şişecam’s multi-port strategy is designed to secure our supply chain operations and ensure flexibility for the company in highly uncertain global markets.
“The port investment will also lower our logistics costs. Necessary permits and licenses have already been obtained which will facilitate faster and healthier execution of the project.
“Şişecam Chemicals USA will become a 50% partner of Denmar US LLC, which is 100% owned by Denmar Holdings LLC, via a capital increase in exchange for $12 million.”