Penrice Soda will receive an AU$8M loan from its joint venture partner to transition from a soda ash producer to importer - a move that will return the business to profit by FY 14. Pro Asia Pacific, its joint venture with SASS Victoria Australia, has a six year term to import and market soda ash into Australia and first sales are due to begin May 2013. SASS, which owns 77% of the joint venture, will loan Penrice $8M to fund the cost of decommissioning the soda ash plant, including the 60 redundancies at the plant and the cost of converting the sodium bicarbonate plant to accept imported soda ash. Penrice has also set up a new receivables facility with a new financier to improve cash flow and complete the restructure by June 2013. In January, Penrice said it would close its soda ash production business at Osborne due to difficult trading conditions, including the high Australian dollar and the increasing tax burden in Southern Australia. CE &MD Guy Roberts said: "While it is unfortunate that the soda ash plant closure will cause staff redundancies, customers will benefit as the JV will maintain service standards and reliable supply to our Australian customers with a quality product," he said. Product will be sourced from American Natural Soda Ash Corp.
