13 August 2013
Crimean Soda Plant reenters the global baking soda market
Crimean Soda Plant, part of Group DF, has launched a baking soda production line with the capacity of 20 thousand tons per year. Thus, for the first time after a four-year pause, Ukraine will return to the global baking soda market.
Investments into the new production totalled UAH 60 million, with the estimated return of investment period of 3 years. By the end of 2013, Crimean Soda Plant intends to bring the production capacity to the level of 20 thousand tons per year with a possibility of subsequent increase to 48 thousand tons.
“Group DF has made an investment in a rather promising business. We expect that within the next couple of years the global market and the demand for baking soda will be growing”, said Dmytro Nechytailo, Head of Group DF’s New Business Projects Department. “Furthermore, baking soda production fits well in the production chain of Crimean Soda Plant, since the main raw material for baking soda production is soda ash of “B” grade produced by the plant”. According to Mr. Nechytailo, Ukraine consumes around 25 thousand tons of baking soda per year, and this market is estimated at UAH 80 million per year.
According to the estimates of Group DF’s analysts, global production capacities for baking soda are about 1.5 million tons per year.
Crimean Soda Plant plans to export about 45% of the produced soda. “We have already agreed on soda supplies to certain CIS and European countries”, says Vladyslav Shmelkov, Chairman of the Board of Crimean Soda Plant JSC, “We plan to reach up to 2.2% share of the global baking soda market”.
Baking soda production is also a major environmental project, as carbon dioxide emitted in the process of soda ash production is consequently used as a raw material for baking soda production. As the result, emissions of greenhouse gases into the atmosphere will be reduced by 4%.
The launch of the new production shop will create around 100 new jobs at the Crimean Soda Plant.
Construction of this new production shop, which began in July 2011, took more than two years, with Yuzhteploenergomontazh being the general contractor for construction.