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CIECH has completed soda contracting for 2020

The CIECH Group has finished contracting on the soda ash market for 2020. Soda from Polish and German CIECH plants will reach approx. 300 locations around the globe. Despite the slowdown observed in the automotive and construction industries, the primary market for the Group - Central and Eastern Europe - is characterised by stable demand, which is supported by, among others, ongoing and completed investments in the float glass production segment and the growing trend of using glass packaging, which may result in an increase in the production capacity of this glass segment, not only in this part of Europe.

 

In the soda business, the vast majority of contracts in Europe are concluded for a year. The contracting period usually spans from October to January. In addition to light and heavy soda ash, the CIECH Group additionally offers its clients - often the largest FMCG corporations and leading glass manufacturers – specialised logistics services and technological consulting.

 

- Good reputation and awareness of market needs have allowed us to conclude advantageous contracts at prices higher than a year earlier, which partly resulted, among others, from from the increasing costs of CO2 certificates. We ran sales activities surrounded by a slight slowdown in the automotive and construction industries, as well as strong competition on the market. Positive contracting is our competitive advantage: excellent product quality, stable supplies and exemplary customer service. A positive signal, worth emphasising, is the further development of industries in which soda ash is a crucial element of the manufacturing processes, primarily in the glass production segment - says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

 

Over the years, the cooperation of the strategic producer of soda ash - CIECH, suppliers of high-quality sand from Polish deposits and a dynamically developing economy with a large share of infrastructural investments made it possible to create in this part of Europe a glass production and processing cluster.

 

In 2019-2020, the capacity of float glass factories located in Poland will increase by approx. 45 percent compared to 2018, which will make our country a leader in terms of new investments in this industry. Last year, a new production line was opened at the glassworks in Ujeździe, and this year further investments in the area of float glass production1 may be launched. The growing popularity of glass packaging in Europe may also result in investments in this segment - large manufacturers of glass packaging2. are operating in Poland and this region of Europe. Plans to expand the packaging glass capcity for the coming years are also announced in Western Europe.

 

Soda ash from CIECH Polish and German plants will go to approx. 300 locations around the globe. Half of the soda ash consumed in the world is used as a raw material for glass production. It is also used in the production of washing and cleaning agents, and the chemical industry. Soda ash is also used, among others, in the metallurgical industry in the Nordic countries, as well as the production of insulation materials and in the rapidly growing segment of battery production.

 

In addition to favourable soda ash trends, CIECH has also increased its share of sodium bicarbonate market in Central and Eastern Europe in recent quarters, offering sodium bicarbonate used in the food and feed industry in Poland, Germany, the Czech Republic, Slovakia and Austria. Due to the increasing environmental protection requirements, a significant increase in the consumption of sodium bicarbonate in the float gas desulphurisation sector is also expected (recently especially in the light of the increasing requirements for pollutant emissions in maritime transport - new International Maritime Organisation standards in force since the beginning of 2020).

 

 

 

CONTACT DETAILS

Mirosław Kuk, Press Spokesperson of the CIECH Group

miroslaw.kuk@ciechgroup.com, tel. +48 723 66 86 86

 

CIECH is an international, expanding chemical group, with a strong standing on European and global markets and with a stable strategic investor (Kulczyk Investments). The company exports its products to over 100 countries around the world, including soda ash, purified soda, salt, plant protection agents, epoxy and polyester resins, polyurethane foams, silicates, and glass packaging. CIECH manufactures products of the highest, world-class quality, which are further used to produce articles which are essential in the everyday life of people all over the world. At the same time, it combines a modern approach to business with the tradition of production which dates back to 1882. Since 2005, the company has been listed on the Warsaw Stock Exchange and, since 2016, on one of the largest stock exchanges in Europe: Börse Frankfurt. More information is available at www.ciechgroup.com.

 

1 https://forumbranzowe.com/rosnacy-popyt-na-szklo-w-guardianie/; https://czestochowa.wyborcza.pl/czestochowa/7,48725,25574163,parki-zielony-i-wodny-sad-fabryka-co-zbuduja-w-2020-r-w.html

2 Among others, factories of leading manufacturers of glass packaging are present in Poland, including BA Glass and Owens-Illinois.

 

 

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