Solvay buys out longtime partner

Deal reached for $120 million

Solvay is now the sole owner of the soda ash operation bearing the company’s name west of Green River.

The company issued a press release Wednesday morning announcing it had purchased the 20% minority stake in the operation owned by AGC for $120 million in a deal that was completed later that day. Solvay and AGC formed the Solvay Soda Ash Joint Venture in 1992, buying the operation that was owned by Tennaco Inc. The facility is one of two plants operated by Solvay in the United States. The company operates six other soda ash facilities in Europe and one in Asia. Solvay carved out its soda ash and derivatives business last year, creating a separate legal entity for the department.

“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,” Philippe Kehren, President of Solvay’s Soda Ash and Derivatives business, said in the press release. “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.”

Kehren said expanding the US-based trona capacities will support Solvay’s ability to meet growing demands throughout the Americas and Asia in a cost-effective manner. He notes the demand is driven by trends in electrification, which uses soda ash in the production of batteries for electric vehicles and the flat glass used in solar panels.

 

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