Şişecam to Invest in Natural Soda Ash Production

Şişecam to Invest in Natural Soda Ash Global player in the glass and chemicals sectors, Şişecam, is advancing its value-adding investment drive by taking its strategic move in natural soda ash, made in 2019, to a new level. Two years ago, Şişecam is expanding the scope of cooperation with Ciner Group, with which it is an equal-share production partner for its first investment in natural soda ash in the US; the partnership structure is changing. Within the new investment plan, Şişecam will increase its stake in the natural soda ash production facility Pacific Project, in which it currently holds an equal share with Ciner Group, to reach a 60 percent ownership position. Additionally, it will acquire a majority stake in Ciner Group's Atlantic and Wyoming facilities and assume management in these investments. The two strong organizations, through the new partnership structure, will further realize a USD 4 billion natural soda ash investment in the US. Through this strategic move, Şişecam's current soda ash production capacity under its control of 2.5 million tons will exceed 10 million tons with the addition of new capacities to its portfolio as a result of the new investments. In the soda league where Şişecam currently ranks eighth, it is expected to become a world leader by 2026 with the additional soda ash capacity it will create. Moreover, as a result of investments that will also include the construction of the world's largest soda ash production facility in a single location, Şişecam aims to become the largest natural soda ash producer in the US. Şişecam Board Chairman Prof. Dr. Ahmet Kırman detailed the company's strategic investment decision as follows: "Throughout its 86-year-long history, Şişecam has never refrained from making large and solid investments it believed in, and has reached its strong position today by capitalizing on the right investment opportunities emerging at the right time. In 2019, we entered into an equal-share production agreement with Ciner Group to realize a joint natural soda ash production facility investment in the US. Now we are expanding the boundaries of our partnership with Ciner Group. Within the scope of this major investment move in natural soda ash, we will increase our stake in the Pacific Project, where we are currently an equal-share production partner with Ciner Group, to reach 60 percent. Furthermore, we will expand by acquiring 60 percent of the shares held by Ciner Group in Ciner Wyoming company, which Ciner Group continues to manage in the US. In addition to these investments, we will also become a 60 percent partner in the Atlantic Project, currently entirely owned by Ciner Group and planned in the field of natural soda ash production. In this way, we will establish a partnership in which Ciner Group, which possesses significant knowledge accumulation in natural soda ash production, particularly through solution mining methods, and Şişecam, with its 86-year history and superior management expertise gained from its international investments across wide geographies and nearly half a century of soda ash production experience, can demonstrate their combined capabilities more powerfully. Furthermore, with the additional capacity we will add to our portfolio, we will be among the world's strongest players in natural soda ash, a field we believe will remain a key sector in the future, just as it is today, with lower-cost production advantages and alignment with sustainability. I believe this investment, which represents the largest investment made by Turkish companies in the US in the history of the Republic and constitutes one of the largest investments made abroad, is the most important indicator that Turkish companies possess the knowledge, experience and competitive strength to play a significant role and assume a game-changing position in global-scale competition. As we have done until today, we will continue to focus on creating value for our shareholders and all stakeholders in all our activities going forward, and will continue our pioneering role in investment moves that offer promising returns and sustainable profitability. Thanks to Şişecam's long-established strong balance sheet, cash position and high creditworthiness in international capital markets, we will continue to fulfill our commitments to our investors, and will not compromise on our principle of sharing the value we create through these investments with our shareholders" he said.

We Aim to Become a Global Leader in Soda with the Additional Capacity We Will Add to Our Production Portfolio by 2026

Şişecam Board Chairman Prof. Dr. Ahmet Kırman: "Nearly half a century ago, when Şişecam started its soda ash operations in Mersin, it expanded its production network to Bosnia and Herzegovina and Bulgaria. In 2019, the company decided to further expand its global footprint in this field and signed a joint development agreement to establish an equal-share production partnership with Ciner Group, which possesses significant knowledge accumulation in natural soda ash production, to build a new natural soda ash production facility in the US. During the more than two-year partnership process we have been conducting, the environment-friendly and sustainable nature of natural soda, the strong increase in soda ash demand we expected, and the harmony we achieved with our partner prompted us to increase our investments in this area and strengthen our presence in an important market like the US. Accordingly, we agreed to increase our stake in the Pacific Project, where we are an equal-share partner with Ciner Group, to reach 60 percent. Furthermore, by expanding the scope of our partnership, we decided to become a 60 percent partner in the Wyoming facility, whose shares Ciner Group holds and manages in the US. We also agreed to hold a 60 percent stake in the Atlantic Project, currently entirely owned by Ciner Group and planned in the field of natural soda ash production. In this way, we will establish a new and stronger partnership in which Ciner Group, which possesses significant knowledge accumulation in natural soda ash production, particularly through solution mining methods, and Şişecam, with its 86-year history and superior management expertise gained from its international investments across wide geographies and nearly 50 years of soda ash production experience, can demonstrate their combined capabilities more powerfully. Furthermore, with the high capacity we will include in our portfolio in the field of natural soda ash, which we believe will be among the sectors of the future as well as today, with lower-cost production advantages and alignment with sustainability, we will be among the world's strongest players" he said. Prof. Dr. Ahmet Kırman described the scale of the new facility investments as follows: "As a result of these investments we will realize in Wyoming in the US, one of the countries with the world's largest soda ash reserves, we will establish an integrated production hub with an annual soda ash production capacity of 8 million tons. This new facility will be the world's largest integrated production hub in a single location. In summary, through such factors as our knowledge and production capability supported by cost advantages, we will create and manage additional natural soda ash capacity in the US without rediscovering America" he said.

We Expect Atlantic and Pacific Facilities to Reach Full Capacity in 2027

Prof. Dr. Ahmet Kırman explained Şişecam's decision to grow in the natural soda ash field with the following reasons: "In the global soda ash sector, where demand exceeded 60 million tons in 2021, we foresee strong demand growth in the coming years. Moreover, we support natural soda ash production, which provides approximately 50 percent reduction in carbon intensity resulting from soda ash production and over 50 percent reduction in water consumption resulting from soda ash production, due to our sustainability-focused perspective. Looking ahead, we see a shift from synthetic soda to natural soda globally, and while preparing for the future on one hand, we maintain our pioneering position that designs the road to the future on the other. Among the investments we announced, the Wyoming Facility has been in production since 1962 and is a completed investment. We anticipate that the Pacific and Atlantic investments will gradually come into operation starting in 2025 in line with their investment plans, and that the new facilities will reach full capacity in 2027" he said.

Largest Turkish Investment Move in the US

Prof. Dr. Ahmet Kırman also outlined Şişecam's growth strategies and value-creating investments in the countries where it operates: "Şişecam, one of Russia's largest Turkish investors, has achieved the status of largest foreign investor as a result of its consistent investments in Bulgaria, where it was awarded the 'sustainable investment' award this year. Şişecam ranks among the top largest Turkish investors in Italy as well. In the first half of this year, we announced that we would realize our first EUR 255 million investment in glass containers in Europe in Hungary. In September, we announced two new float investments worth TRY 4 billion in automotive glass and flat glass in Turkey. We also recently announced that we decided to invest approximately TRY 1 billion in a new furnace with annual capacity of 155 thousand tons at our glass container production facility in Eskişehir. Finally, despite having only two years of investment history in the country, we decided to sign the largest Turkish investment ever made in the US, and have succeeded in becoming the largest Turkish investor in the US. At the same time, we believe this investment, which constitutes one of the largest investments implemented abroad by Turkish companies in the history of the Republic, has special significance as an important indicator that Turkish companies possess the knowledge, experience and competitive strength to play a significant role and assume a game-changing position in global-scale competition. As a strong representative of Turkey's industrial capability and development, we are committed to continuously advance by reinforcing our growth steps with our successful operations and financial results, and supporting them with our investments while creating value for all our stakeholders" he said.