- Investment of PLN 80 million will increase sodium silicate production capacity by 30%.
- Construction of the new furnace in Żary is set to complete by the end of 2021.
- The new furnace will reduce CO2 emissions per ton of product by about 20%.
- Annual revenue from the silicate business is expected to increase by PLN 60 million.
Investment and Expansion
At CIECH's Żary plant, a new furnace for melting vitreous sodium silicate is under construction. This investment, worth approximately PLN 80 million (€18 million), aims to increase production capacity and solidify CIECH's position as a leading sodium silicate supplier in Europe. The project is expected to be completed by the end of 2021.
Efficiency and Environmental Impact
The new furnace will replace older, less efficient units, boosting production capacity by over 30% to around 240,000 tons. It will also feature improved efficiency parameters and lower natural gas consumption, reducing CO2 emissions per ton of product by about 20% compared to current technology. The investment will utilize existing infrastructure to optimize fixed costs.
Market Outlook
External analysis predicts the precipitated silica market will grow by about 7% annually in the coming years. Despite the economic downturn caused by the COVID-19 pandemic, silicate production remained resilient, maintaining at least 80% capacity. In Q1 2021, the segment saw a 22.6% year-on-year revenue increase and a 40% EBITDA growth.
Applications and Exports
The CIECH Group produces sodium and potassium silicates in both solid and liquid forms. Sodium silicates are used in energy-saving tires, toothpaste, paints, plastics, detergents, paper, and zeolites. Potassium silicates find applications in construction chemicals and welding. The company also exports silicates to Asia and North America.
