Şişecam to Invest in Port Operations

Şişecam to Invest in Port Operations Şişecam will invest in port operations in California together with Ciner Group to meet the logistics requirements of its natural soda ash investment in the United States. Şişecam Chemicals USA will become a 50% partner in Denmar US LLC, which will carry out the Stockton Port Operations Project to establish logistics infrastructure to be used in potential exports of the ongoing soda ash investment. Şişecam has decided to invest in a new business area with Ciner Group to meet the potential logistics requirements of its natural soda ash investment in the United States, which is ongoing as part of its plans. Şişecam Chemicals USA, a wholly-owned subsidiary of Şişecam, will partner with Denmar US LLC, which will carry out the Stockton Port Operations Project with annual capacity of 5 million tonnes, to establish the logistics infrastructure to be used in potential exports of the ongoing soda ash investment. The Stockton Port Operations investment is scheduled to become operational in 2027, in line with Şişecam's natural soda ash investment in the United States, which is planned to be phased in by 2028. With this new investment, Şişecam will secure sustainable growth by building the supply chain structure that will enable it to achieve its natural soda ash export targets in the United States. Şişecam Board of Directors Chairman and Member Prof. Dr. Ahmet Kırman made the following statement regarding this strategic investment decision that will support Şişecam's natural soda ash investment in the United States: "In 2021, we announced our decision to strengthen our presence in the natural soda ash field in the United States. The growing market and increasing demand continue to prove that our decision was correct. The natural soda ash business area is today one of the most profitable areas within Şişecam operations. With the phased commissioning by 2028 of the 5 million tonne natural soda capacity of the Pacific Project, which is ongoing as part of the plans, the total production capacity of the Şişecam and Ciner partnership's US soda operations will reach 7.5 million tonnes. We assessed that multiple port access is important to reduce the cost of access to international markets, facilitate operations management and eliminate supply chain-related risks. In this context, we decided to become a partner in the California-Stockton Port Operations Project, where Denmar US LLC has completed permitting and licensing. The Stockton Port Operations Project capacity is planned to start at 3 million tonnes annually in 2027 and reach full capacity of 5 million tonnes annually in 2029." Prof. Dr. Ahmet Kırman noted that there are 3 fundamental strategic factors supporting the investment decision and continued his statement as follows: "The new port operations will establish the logistics infrastructure required for our export operations within our natural soda ash investment in the United States. Within our multiple port strategy, our supply chain operations will be secured and will provide Şişecam with flexibility in an uncertain global market. The port investment, which will also enable us to save on logistics costs, already has critical permits and licenses, which will facilitate faster and smoother project progress. In this context, Şişecam Chemicals USA will become a 50% partner in Denmar US LLC, which is 100% owned by Denmar Holdings LLC, through a capital increase in exchange for USD 12 million." he said. Prof. Dr. Ahmet Kırman continued his remarks as follows: "In today's world where uncertainties constantly change business plans, institutions need to take steps by continuously calculating growth targets and obstacles. Şişecam maintains its success in such an environment through foresighted and solid steps. In 2022, we acquired Refel, a refractory producer in Italy, to ensure sustainability in our investments. Now we are taking a similar step with our port operations investment that will secure our growth plans in the United States. Each investment we make supports the growth of our current business lines, while every new field we enter strengthens our global growth strategy."

Şişecam to become the world's largest soda ash producer

Şişecam's investment history in soda ash in the United States dates back to 2019. Şişecam, which decided to expand its global footprint in natural soda ash production, signed an agreement with Ciner Group as equal partners in 2019 to establish a new natural soda ash production facility in the United States. During the 2-year partnership period, the environmentally friendly and sustainable nature of natural soda, combined with the expected strong increase in soda ash demand, prompted Şişecam to increase its investments in this area and strengthen its presence in an important market like the United States. In 2021, Şişecam increased its share in the Pacific Project, where it was an equal partner with Ciner Group, to 60%. It also decided to expand the partnership area and become a 60% partner in the shares held at the Wyoming facility managed by Ciner Group in the United States. Additionally, it shook hands to hold a 60% stake in the Atlantic Project, which is entirely owned by Ciner Group and planned for natural soda ash production. Şişecam, which ranks among the world's top 3 soda producers, will become the world's largest soda ash producer with its US natural soda investment planned to be phased in by 2028, combined with global soda ash production capacity of over 10 million tonnes under its management.