Ciech confirms end to soda ash production at Romania plant
Published: Friday, 01 November 2019
A price rise of 120% for steam supplies has led Poland-based chemicals producer Ciech to suspend production at its plant in Romania while it explores its options.
Poland-based chemicals producer
Ciech’s soda ash plant in Romania was scheduled to
stop production on September 18, but the company will continue
to look for an alternative supply of steam for its factory so
it can resume production.
Steam supply is required to produce synthetic soda
ash, and CET Govora, the local steam producer, has imposed a
135% increase in the price of its contracted supply. This
caused Ciech to announce that soda ash production would be
Although that figure has since been negotiated
down to a 120% rise, "Ciech is not able to accept any increase
in relation to the current price level because it would result
in permanent unprofitability of its business operations," the
Ciech will use this enforced outage to maintain
equipment, the company said.
The company had previously told Fastmarkets that
it was considering a joint venture to create its own source of
Ciech’s Romania plant has capacity
for 600,000 tonnes per year of soda ash but before this new
outage it had been producing only 400,000-450,000 tpy,
according to two sources.
The plant appears likely to stay out the market
until the beginning of 2020 while the company assesses options
for a steam supply.
Soda ash vendors are agreed that price increases will be
applied to annual contracts after negotiations, and one
producer believed that the market will be tighter once
Ciech’s plant has come out of the market, although
that would be offset by a recent slowing of demand.