FMC completes acquisition of Tg Soda Ash

FMC Corp. (Chicago, IL) has completed the purchase of Tg Soda Ash Inc. from Elf Atochem North America, Inc. (Philadelphia, PA) for $50 million in cash and a payment contingent on the financial performance of the combined soda ash operations between 2001 and 2003. The contingent payment is due at the end of 2003.

The transaction includes Tg's 1.3 million t/y Green River, WY, processing plant, mine, and certain trona ore land leases. The acquisition, which is adjacent to FMC's Green River operations, brings FMC's total annual capacity to 4.85 million t/y. This puts FMC firmly ahead of OCI Wyoming, a unit of OCI Chemical Corp. (Shelton, CT) that operates 3.1 million st/y mine in Green River, WY.

General Chemical and Solvay Minerals also operate large, >2-million-t/y soda ash mines in the Green River area. The remaining producer, North American Chemical, operates a 1.5-million-t/y mine in Argus, CA, that removes minerals from a lake. Its isolated position on the West Coast provides some insulation from the cost pressures that faced Tg when it tried to compete with Green River larger operations.

"We expect substantial cost savings and increased competitiveness —particularly in international markets—from the synergies of our combined operations," says FMC chairman/CEO Robert Burt.

The synergies grow out of the close proximity of the two operations. FMC said it plans to continue to operate the Tg processing plant and ultimately will improve the competitive position of the plant by supplying trona ore from the FMC mine. The combined operations will employ about 1300 people in the Green River area.

About half of all soda ash goes into the manufacture of glass and ceramics. Another 25% is used in the chemical industry, largely for neutralization of acidic waste.

For more information: FMC Corp., Alkali Chemicals Div., 1735 Market St., Philadelphia, PA 19103. Phone: 215-299-6000. Fax: 215- 299-6836.

By Alan S. Brown