Solvay today announces the acquisition of the 20% minority stake of AGC in the Soda Ash JV operated in Green River, WY, USA, building on its leadership position in trona-based soda ash production.
Solvay is a global leader in soda ash, with nine major soda ash and bicarbonate plants, of which six are located in Europe, two in the US and one in Asia. Solvay and AGC formed the Solvay Soda Ash Joint Venture (SSAJV) back in 1992. The facility, operated by Solvay, produces soda ash and sodium bicarbonate from trona, a naturally occurring mineral to serve the glass, chemicals, detergents and food industries, among others.
“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,” said Philippe Kehren, President of Solvay’s Soda Ash & Derivatives business. “ 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. In addition, our Green River operation is a world-class, cost-leading asset. Expanding our US trona-based capacities will support in a cost-effective manner our ability to meet growing demand in the Americas and in Asia, which is driven by megatrends including electrification, which uses soda ash to produce lithium carbonate used in EV batteries, and resource efficiency, where it’s used in flat glass for solar panels."
At a cash purchase price of $120 million, this transaction will be significantly value accretive to Solvay, with a post tax cash return on capital in excess of 15%. The transaction is expected to be completed on May 4, 2022.
Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 21,000 employees in 63 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities and delivered net sales of €10.1 billion in 2021. Solvay is listed on Euronext Brussels (SOLB) and Paris. Learn more at www.solvay.com.
About Solvay Soda Ash & Derivatives
Solvay Soda Ash & Derivatives is a global business division of Solvay. As a world leader in its markets, it provides a global, secured and sustainable supply of soda ash to its customers manufacturing glass for building, automotive, solar panels and packaging applications, as well as detergents and chemicals. It also develops solutions based on sodium bicarbonate for the health care, food, animal feed and flue gas cleaning markets. Solvay Soda Ash & Derivatives has 11 industrial sites worldwide, more than 3,200 employees and serves 120 countries.