Press releases

CIECH is expanding its salt business – the preparatory stage of its EUR 100 M investment has just been initiated

The Management Board of CIECH S.A. has decided to initiate the preparatory stage for the construction of a completely new evaporated salt production plant in Stassfurt, Germany. The planned location of the new factory is close to the existing soda plant of the Group. The final decision on the implementation of the investment will be made within the next few quarters and will depend on market conditions, ability to obtain relevant administrative decisions and public aid from the German federal and regional authorities. The value of the potential investment is approximately 100 million Euros. 

The preparatory stage was initiated following in-depth market and technological research, supported by reputable advisory companies with international experience. The expert reports preliminarily confirmed the attractiveness of the project.

- One of the elements of our continued growth is the dynamic development of our businesses beyond soda ash, including the salt business. At present, the expansion strategy is based on the production capacity of our plant in Janikowo in Poland. If the final decision to go ahead with the investment is made, within approx. 3 years, a plant will be established with a view to providing West European markets with various products, from dishwasher salt and tablets, to specialised pharmaceutical salt – says Maciej Tybura, President of the Management Board of CIECH S.A.

According to the assumptions, the plant to be established in Stassfurt will have a production capacity of 450 thousand tons of dry salt per annum (in comparison, the Janikowo plant manufactures approx. 600 thousand tons of dry salt every year). After commissioning, the new plant is expected to supply its products to West European markets, while the Polish plant is expected to supply its products to Central European and Scandinavian markets. The advantage of the location in Germany is the availability of raw materials and the network of excellent transport links, enabling the company to quickly reach the attractive markets. According to preliminary assumptions, the plant is to employ about 100 people.

The preparatory stage of the investment will involve tendering procedures related to project implementation, including key technology bids, preparation of the plant design documentation, and obtaining administrative decisions.

In recent years, CIECH Group has been intensively developing its salt business, by investing in its production capacity growth and portfolio expansion. As a result of these operations, the Group introduced, among others, its offer of salt tablets, and consequently, entered into a very attractive market for water treatment products. In addition, an investment of PLN 30 million is being implemented to introduce further products – dishwasher salt and salt licks for breeding animals. The Group also offers food-grade salt, available in the largest store chains for retail customers, and has recently also began to distribute Himalayan and marine salt.

CIECH Group has been present in Germany for 10 years, since the purchase of the Sodawerk plant (now CIECH Soda Deutschland). During this time, the value of CIECH’s investment in Germany has amounted to EUR 100 million, including such investments as expansion of soda ash and purified soda production capacity.

CIECH is an international, professionally-managed Group with Polish roots, with a well-established position of a leader of the chemical sector in Central and Eastern Europe. It manufactures products which are used in the production of articles necessary in everyday life of people all over the world - state-of-the-art products of the highest, world quality. Taking advantage of the support of a reliable strategic investor (Kulczyk Investments), it implements the strategy of global development, extending its sales in world markets. At the same time, it combines the modern approach to business with production tradition which goes back to 1882. 

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