Home / Knowledge / News / Textiles / Penrice signs Soda Ash supply contract with SASS Victoria
Penrice signs Soda Ash supply contract with SASS Victoria
Apr '13
As previously communicated, in the face of increasingly difficult domestic trading conditions for its soda ash business and increasing costs, Penrice Soda Holdings Limited has decided to close soda ash production at its Osborne, Adelaide chemical facility in June 2013 and import soda ash instead.

In January 2013, Penrice signed a Memorandum of Understanding with SASS Victoria Australia Pty Ltd (SASS) to form a Joint Venture (JV) to import and market soda ash in Australia. The commencement of the JV was subject to satisfaction of conditions including final due diligence and signing definitive transaction documents.

JV commences with launch of “Pro Asia Pacific”

Penrice announces that the parties have signed definitive transaction documents and the JV, to be known as “Pro Asia Pacific”, is now formed with sales to commence from May 2013.

Penrice Managing Director and CEO, Mr Guy Roberts said, “Penrice is responding to the continuing losses in its soda ash business by closing soda ash production in Adelaide and switching to importing soda ash via an import and distribution joint venture with SASS.

"With Pro Asia Pacific, Penrice is delighted to be joint venturing with the world’s largest soda ash distributor with product sourced from American Natural Soda Ash Corporation (“ANSAC”), the export arm of three of the world’s leading soda ash producers.”

He said, “While it is unfortunate that the soda ash plant closure will cause staff redundancies, customers will benefit as the JV will maintain service standards and reliable supply to our Australian customers with a quality product. Importantly for Penrice, the restructure is expected to enable Penrice’s soda ash business to generate a profit from FY2014.”

Penrice’s Osborne chemical plant will continue to manufacture its range of premium sodium bicarbonate products and lime, which will be marketed for sale for the first time.

Key features of the Pro Asia Pacific JV include:
-The JV will be owned by SASS as to 67% and Penrice as to 33%
-The term of the JV will be a minimum of 6 years
-SASS will loan Penrice $8 million to fund the cost of decommissioning the soda ash plant, including redundancies and the cost of converting the sodium bicarbonate plant to accept imported soda ash. The loan is repayable over the term of the JV
-Penrice will provide inbound logistics, warehousing, packaging and transport services for the JV at commercial rates

Sodium bicarbonate production continues as usual

Penrice has conducted trials with imported ANSAC soda ash and has produced sodium bicarbonate of the equivalent quality to current specification. Penrice has entered into a long term supply agreement with Pro Asia Pacific for the supply of ANSAC soda ash. Customers can be assured that quality and reliability of supply will be maintained.

Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Planning to Take the Leap towards

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search