WE Soda sells 60% of its US soda ash business
22 December 2021
We Soda Ltd, (“WE Soda”) the UK incorporated holding company which owns and operates the global soda ash production interests of the Ciner Group of Istanbul, Turkey, announced today that it has completed the previously-announced sale of a 60% interest in Ciner Resources Corporation (CRC) to Şişecam Chemicals USA Inc., a subsidiary of Turkiye Sise ve Cam Fabrikalari A.S. of Istanbul, Turkey (“Şişecam”).
CRC indirectly owns an approximately 72% limited partner interest in Ciner Resources LP (NYSE: CINR) (“Ciner Resources”), as well as its 2% general partner interest and related incentive distribution rights, and so the sale of a controlling interest in CRC also results in a change of control for Ciner Resources. WE Soda will use the proceeds of the sale to repay existing indebtedness.
The Ciner Group also announces today that it has completed the previously-announced sale of a 10% interest in Pacific Soda LLC (“Pacific”) and a 60% interest in Atlantic Soda LLC (“Atlantic”) to Şişecam. The Ciner Group will transfer its remaining 40% interests in each of Atlantic and Pacific to WE Soda as a contribution in kind in early 2022.
The announced sale has taken Şişecam’s combined interest to 60% in each of Atlantic and Pacific, with the intent that they will be developed together as a greenfield soda ash and sodium bicarbonate production facility located in Wyoming, USA, using solution-extraction technology developed by WE Soda at its existing production facilities in Turkey. When fully developed, the facility will deliver over 5 million metric tonnes of soda ash and sodium bicarbonate per year, with Şişecam and WE Soda being responsible for the sales and marketing of their proportionate production share.
Şişecam has over 80 years of history and is one of the largest publicly-listed industrial companies based in Turkey. With production facilities in four continents and 14 countries, Şişecam is also one of the largest glass and chemicals producers in the world. Şişecam has been a partner with the Ciner Group in Pacific since 2019 and is a long-term customer of WE Soda. Following the sales, Şişecam has operating control over CRC and both Atlantic and Pacific. WE Soda will remain a long-term supportive shareholder.
Commenting on the announced transactions, Alasdair Warren, CEO of WE Soda said, “We are delighted to have completed this deal with Şişecam. They have been a strong and trusted partner of WE Soda and the Ciner Group for many years and we look forward to continuing our joint development of Pacific and Atlantic together.”