Magadi Soda Company is scheduled to post a firmer run in 20010 as the effects of global economic downturn and competition from cheaper synthetic imports lessen.
After a slow 2009, soda ash production…
Magadi Soda Company is scheduled to post a firmer run in 20010 as the effects of global economic downturn and competition from cheaper synthetic imports lessen. After a slow 2009, soda ash production over the first quarter increased by 65.6% to 105,977 tonnes, compared to 64,006 tonnes in the same period of 2009. Soda ash mining recovered to normal levels in the first quarter of 2010 as the industry recovered from the stiff competition from cheaper synthetic imports from China which forced closure of some plants at Magadi Soda Company at the beginning of 2009, Central Bank of Kenya said in its latest economic review for April. Magadi Soda was heavily affected by the aftershocks of the global financial crisis since most of its products are for export. In fact, Magadi Soda“s production and export account for 40% of the world soda ash, mainly used in the manufacturing of glass and detergents. During 2009, slowed export orders obliged the company to close one of its new plants for the whole of February, cutting production to almost half. During the same quarter, the firm also stopped two production lines at its old 350,000 tonnes-a-year mill for six weeks. Both closures were aimed at reducing high stocks and avoid possible job cuts. However, with the comeback of the global economic growth, buyers in most international markets re starting to regain their purchasing power. Asia, one of the Magadi Soda“s main target markets, is expected to post strong growth in 2010 after a stronger first half.