Şişecam will make a port operation investment in California together with Ciner Group for the logistics needs of its natural soda ash investment in the USA. Şişecam Chemicals USA will become a 50% shareholder of Denmar US LLC, which will run the Stockton Port Management Project to establish the logistics infrastructure to be used in the potential export of the ongoing soda ash investment.
Şişecam decided to invest in a new business area with Ciner Group for the potential logistics needs of the natural soda ash investment in the USA, which continues within the framework of the plans.
Şişecam Chemicals USA, a 100% owned subsidiary of Şişecam, will become a partner with Denmar US LLC, which will carry out the Stockton Port Management Project with an annual capacity of 5 million tons to establish the logistics infrastructure to be used in the potential export of the ongoing soda ash investment.
The Stockton Port Management investment is targeted to start operations in 2027, in line with Şişecam's natural soda ash investment in the USA, which is planned to be commissioned gradually until 2028.
With its new investment, Şişecam will ensure sustainable growth by establishing a supply chain structure that will enable it to achieve its natural soda ash export targets in the USA.
Şişecam Chairman and Managing Director Prof. Dr. Ahmet Kırman made the following statement regarding this strategic investment decision that will support Şişecam's ongoing natural soda ash investment in the USA to achieve its goals: ‘In 2021, we announced our decision to strengthen our presence in the USA in the field of natural soda ash. The growing market and increasing demands continue to prove that our decision was the right one. Today, the natural soda ash business area is one of the most profitable business areas of Şişecam operations. With the gradual commissioning of the 5 million tons of natural soda capacity of the Pacific Project, which continues within the framework of the plans, until 2028, the total production capacity of Şişecam and Ciner partnership in the USA will reach 7.5 million tons. We evaluated the importance of multi-port access in order to reduce the cost of accessing the international market, facilitate the management of the operation and eliminate the risks arising from the supply chain. In this context, we decided to partner with the California-Stockton Port Management Project, for which Denmar US LLC has completed its permit and license purchases. It is planned to start the Stockton Port Management Project capacity from 3 million tons per year in 2027 and to increase it to 5 million tons per year in 2029.’
Prof. Dr. Ahmet Kırman stated that there are 3 main strategic factors that support this investment decision and continued as follows: ‘The new port operation will provide the necessary logistics infrastructure for our export operations within the scope of our USA natural soda ash investment. As part of the multi-port strategy, our supply chain operations will be secured and will give Şişecam flexibility in the uncertain global market. The port investment, which will also enable us to save on logistics costs, already has critical permits and licenses, and will facilitate the faster and healthier continuation of the project. In this context, Denmar US LLC, which is 100% owned by Denmar Holdings LLC, will be a 50% shareholder by Şişecam Chemicals USA, through a capital increase method and in return for 12 million dollars.’
Prof. Dr. Ahmet Kırman continued his words as follows: ‘In today's world, where uncertainties constantly change their business plans, it is necessary for institutions to take steps by constantly calculating their growth targets and obstacles. In such an environment, Şişecam makes its success sustainable with foresight and solid steps. In 2022, we bought Refel, a refractory manufacturer in Italy, to ensure sustainability in our investments. We are now taking a similar step with our port operation investment, which will ensure our growth plans in the USA. Every investment we make supports the growth of our existing business lines, while every new area we enter strengthens our global growth strategy.’
