Australia“s sole producer of soda ash and sodium bicarbonate, Penrice Soda Holdings Ltd, has extended its contract with its second largest customer, Amcor Glass, a division of Amcor Ltd.
Under the l…
Australia“s sole producer of soda ash and sodium bicarbonate, Penrice Soda Holdings Ltd, has extended its contract with its second largest customer, Amcor Glass, a division of Amcor Ltd. Under the long term deal, Penrice will supply soda ash to the Amcor Glass Barossa Valley plant, which is a major Australian manufacturer of bottles for the wine industry. The contract includes, for the first time, the supply of soda ash blends for colouring bottles produced at the Amcor plant. Penrice chief executive Guy Roberts said the contract represented a large part of Penrice“s soda ash business and would generate significant increased earnings. “We continue to aggressively pursue new contracts and are currently involved in additional soda ash supply negotiations”, he said. “These negotiations are enhanced by the improved and more reliable performance of our Osborne plant in South Australia, which has increased soda ash production since the implementation of Penrice“s “Way Forward Plan“ introduced at Osborne in 2007”. “We are already examining options to further expand soda ash output at our Adelaide plant to ensure the company maintains its market leadership in the Australian market”. The Amcor contract has assisted in recovering cost increases and reinvestment in the business, Penrice said in a statement on 4 March 2008. Mr. Roberts forecast strong domestic and international demand for soda ash, limited supply capability and price solidity through the medium to long term. “Further price rises are expected to flow through as both soda ash markets and global bulk shipping markets tighten”, he said. In the last week of February 2008, Penrice announced a 15% rise in net profit for the six months to 31 December 2007, to AUD 2.7 million. It also announced a AUD 0.055 per share interim dividend, up 10% on the previous corresponding period.