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Soda Ash Manufacturing Industry

Tuesday, December 25, 2018

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Soda Ash Manufacturing Industry. Production of Sodium Carbonate / Soda Crystals/ Soda Ash / Washing Soda. Exploring Business Opportunity in Soda Ash Production

Soda ash, also known as sodium carbonate (Na2CO3), is an alkali chemical refined from the mineral trona or naturally occurring sodium carbonate-bearing brines (both referred to as natural soda ash), the mineral nahcolite (referred to as natural sodium bicarbonate, from which soda ash can be produced), or manufactured from one of several chemical processes (referred to as synthetic soda ash).

Applications of Soda Ash:

Soda ash, also known as sodium carbonate, has the following uses:

·         Industrial Applications –Being a highly soluble substance, soda ash is used for numerous chemical reactions. It’s mostly used as an ingredient in the manufacture of dyes and coloring agents, synthetic detergents and fertilizers. It’s also an important chemical agent used in enameling and petroleum industries.

·         Environmental Applications –Sodium carbonate is used to improve and treat the alkalinity of lakes that have been affected by rain. It is also used to reduce the acidity of emissions being generated from a power plant.

·         Detergent Manufacture –Soda ash is replacing phosphates that were earlier being used in a number of household detergents. Many other cleaning products such as dishwashing soaps also contain varying amounts of soda ash in their formulations.

·         Metallurgy –Sodium carbonate is used to remove or de-clarify phosphates and sulfurs from a number of non-ferrous and ferrous ores. It’s also used in recycling of aluminum and zinc.

·         Glass Manufacture –Soda ash is an important ingredient in the manufacture of glass, since it helps reduce silica’s melting point.

·         Other Applications –Soda ash is also a common addition to spa and pool treatment chemicals helping in reducing the acidity in water. It is also used in manufacture and sealants and glues, preparing pulp in paper manufacture, and sometimes in soil preparation as well.


Market Outlook

Soda Ash Market in India

The market of soda ash in India is anticipated to cross $2.8 billion by the end of 2025. Growing demand for soda ash from numerous industries such as glass, soap & detergents, pulp & paper, etc., is expected to drive the India soda ash market during 2016 - 2025. Moreover, growing applications in construction and chemical industries is further anticipated to positively influence the India soda ash market during forecast period.

Increasing rate of modernization and improving living standards of consumers are positively influencing the demand for soda ash from the country's glass industry. Moreover, electronic goods like smartphones, LCDs, laptops, are also being manufactured at a rapid pace in India, which, in turn, is aiding the country's glass industry, thereby driving the India soda ash market.

The Indian market for soda ash has the greatest potential to expand in the near term with positive outlook of country’s relatively robust economy, its gap in housing and it’s rapidly expanding liquor and automotive industries – all of which are expected to support glass demand.

Numerous applications of Soda Ash cover both domestic and commercial usage such as water softener in laundering, dyeing fixing agent, stain remover, foaming agent in toothpaste, wetting agent in brick industry, food additive, cleaning silver metal, pH buffers, etc. Robust growth in the country's glass and soap & detergent industries is one of the prime factor surging the demand for soda ash in the country.

Global Soda Ash Market:

Soda ash is progressively being used as a fluxing agent to lower the melting point of the furnace, which is required to melt silica. The utilization of soda ash has reduced the overall energy consumption in glass manufacturing industries; the demand for flat glass and container glass will continue to be significant in upcoming years. Container glass is also being increasingly used in food and beverage and pharmaceutical packaging industries, thereby generating significant traction in the market. There has been a substantial rise in production of glass over the past few years owing to high demand from automotive, and building and construction industries.

Soda ash is a vital raw material used for the production of various chemical fertilizers, dyes and coloring agents. It is also used as a chemical in preparing pulp for the paper and pulp industry. A number of adhesives and sealants are also being manufactured with the help of soda ash. Several chemicals, such as sodium silicate, sodium bicarbonate and percarbonate, and sodium chromate and dichromate, are produced using soda ash, which is expected to generate significant traction in near future. In the metallurgical processing industry, soda ash is utilized for the recycling of aluminum and zinc. It is also employed for removing phosphates and sulfurs from ferrous and non-ferrous ores. Additionally, soda ash is also added to pools, lakes and spa which helps to maintain alkalinity of water and remove acidity. Aforementioned factors are identified to be primarily responsible for sustained sales of soda ash market on a global level. However, the overall growth prospects remain passive throughout the forecast period.

Soda ash is used as an additive in numerous home detergents and cleaning products since it is very effective in removing alcohol and grease stains from clothing. In addition, it is used as a substitute for sodium hydroxide in cooking for lyeing, especially with lye rolls and German pretzels. Further, the escalating demand for soda ash in water treatment and environmental applications for improving the alkalinity of lakes and controlling the pH of water has spurred the overall growth of the market. Another growth-inducing factor is a considerable increase in the production of glass due to rising demand from the construction and renovation, and automotive industries. However, the availability of soda ash substitutes, namely sodium silicate, caustic soda, etc. are limiting the overall growth of global soda ash market. Moreover, the stringent environmental regulations regarding the production of soda ash is also adversely affecting the market growth. Looking forward, the market value is projected to exceed US$ 15 Billion, expanding at a CAGR of more than 6% during 2018-2023.

Geographically, Asia-Pacific region leads the Global Soda ash market. China being largest producer and consumer of soda ash dominates the market segment. Rapid industrialization and huge demand from building & construction activities is likely to drive the soda ash market growth. Growing demand for soaps & detergents, water treatment facility and metallurgy in China, India, Thailand and Indonesia has boosted the soda ash market demand. The growing capacity of natural soda ash from China is due to large number of natural miners compared to U.S. North America is second largest market owing to 90% of production of soda ash comes from state of Wyoming. The Chinese market is likely to witnessed close competition from US market owing to natural soda ash manufacturer with low cost and over dumping of soda ash in Asia-Pacific countries. Europe have witnessed stagnant growth owing to strict regulations for producing synthetic soda ash.

The consistent growth in construction sector worldwide is increasing the demand for glass products and thereby driving the demand for soda ash market. The demand for flat and container glass is increasing in pharmaceutical packaging and food & beverage industry which in one of the driver for the market.

Apart from glass manufacturing, soda ash is also utilized for the manufacturing of a number of chemicals such as sodium silicate, sodium bicarbonate and percarbonate and sodium chromate and dichromate. It is also used for the production of dyes, coloring agents, adhesives, and sealants, among several others. It is also utilized for preparing pulp in the paper and pulp industry.

Soda Ash Industry Players:

The major key players of this market are: Tata Chemicals Limited (India), Solvay S.A. (Belgium), OCI Wyoming, LLC (U.S), Nirma Limited, (India), Searles Valley Minerals (U.S), GHCL Limited (India), FMC Corporation (US), Ciech SA (Poland), Oriental Chemical Industries (Korea), Soda Sanayii (Turkey) and others.SA (Poland), Oriental Chemical Industries (Korea), Soda Sanayii (Turkey) and others.


Cost Estimation:

Plant Capacity:                                  500000 MT/Annum      

Plant & Machinery (P & M):               Rs. 30550 Lakhs

Cost of Project:                                  Rs. 42100 Lakhs

Return of Return (ROR):                             44.00%      

Break Even Point (BEP):                    42.00%


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