Turkey’s Şişecam inks $450-mn deal for US soda ash facility

 Turkey’s Şişecam inks $450-mn deal for US soda ash facility

Turkish glassmaker Türkiye Şişe ve Cam Fabrikaları A.Ş. (Şişecam Turkey) is acquiring a 60% stake in a US soda ash facility of the Ciner Group for $450 million.

As part of the deal, Ciner Enterprises Inc. (CEI), a wholly owned subsidiary of We Soda Ltd, will sell 60% of Ciner Resources Corporation (CRC) to Şişecam Chemicals USA Inc., a wholly owned subsidiary of Şişecam Turkey.

CRC owns an approximately 72% limited partner interest in the New York Stock Exchange-listed Ciner Resources LP, as well as its 2% general partner interest and related incentive distribution rights. The sale of a controlling interest in CRC will result in a change of control for Ciner Resources.

We Soda is the UK-based holding company of Turkey’s Ciner Group. It will use the money raised from the sale to repay its debts.

The acquisition comes three months after the Turkish glassmaker raised $75 million in debt financing from International Finance Corporation (IFC), in a bid to revive its business that has taken a hit in the wake of the coronavirus pandemic. IFC said at the time its euro-denominated loan would help the company implement its capital expenditure programme that had been delayed by the pandemic and also finance its working capital requirements.

Şişecam separately announced a plan to invest in sustainable technology company Basalia Technology. This will be the Turkish company’s first investment in the biotech segment.

The 85-year-old Turkish company employs more than 22,000 people and makes several varieties of glass including flat glass, glassware, glass packaging and glass fibre, and soda and chromium chemicals. It is one of the two biggest producers of glassware in the world and also a leading manufacturer of glass packaging, flat glass and soda glass.

Apart from Turkey, it also operates across eastern and southern Europe, Central Asia and the Middle East. It is present across Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia-Herzegovina, the Russian Federation, Georgia, Ukraine, Egypt, India, and the US.

Aman Malik

The Capital Quest