Şişecam Soda Lukavac d.o.o.

Şişecam Soda Lukavac d.o.o.

 

Informations

Company profile

ŞİŞECAM operates predominantly in the manufacture of glass and chemicals. Its main operation fields encompass all the key areas of glassmaking such as manufacturing of flat glass, glassware, glass packaging, glass fiber as well as soda ash and chromium chemicals. Şişecam Group ranks in first ten among the biggest globally and ranks in first five in Europe in terms of its main business fields. The Group performs its operations in accordance with internationally recognized standards from facilities located in eight countries such as Turkey, Russia, Georgia, Bulgaria, Italy, Egypt, China and Bosnia and Herzegovina with 18,000 employees.  The shares of 5 companies of the Group are listed on Istanbul Stock Exchange. Soda Sanayii A.Ş. is a member of the chemicals business unit of Şişecam Group and it’s the sole manufacturer of synthetic soda ash and chromium chemicals in Turkey. Since September 2006, Soda Sanayii is also operating in Bosnia and Herzegovina through its subsidiary Sisecam Soda Lukavac d.o.o., which is the sole manufacturer of soda ash in ex-Yugoslavia, produces synthetic soda ash and derivative products based on soda ash as well, which are used as raw material in glassmaking and detergent industries.

Information Memo on Sisecam Soda Lukavac d.o.o

Soda Sanayii participated to the privatization of Fabrika Sode Lukavac (FSL), which was realized by forming a new joint venture, and acquired the 80% of the basic capital of the newly formed Sisecam Soda Lukavac (SSL) by providing cash contribution in the amount of 24 million Euros. After registration of SSL, Soda Sanayii took over the management of the company in September, 2006. At that time, FSL was on the verge of bankruptcy with debts amounting to 50 million Euros and was not able to respect its liabilities against its own employees and partners. SSL fulfilled its investment obligations as well as other obligations stemming from the foundation agreement in the amount of 44,5 million KM (22,7 million Euros) in 2 years, although 5 years was foreseen in the aforesaid contract. The investments which aim for the rehabilitation of the plant, securing the stability of production, cost reduction, improvement in the product quality and efficiency increase are still in process. As of today, the aforesaid investments have reached the amount of 60 million Euros.

Presently, the investments and the maintenance works done in the last 5 years have led SSL to produce at the capacity of 350 thousand tons of soda ash per year. SSL continuously has been ranked as 7th biggest exporter of Bosnia and Herzegovina (BiH) in the last a few years. The company, which creates significant added value for Tuzla Canton and Bosnia and Herzegovina respectively, by purchasing most of its raw materials locally, at the same time exporting 99% of its products, employs 570 people as well. Vijenac Limestone Quarry, which provides raw material to SSL, and which was acquired by Şişecam Group subsequently from relevant privatization agency, currently employs additionally 190 staff. The total number of employment secured by our investments reaches to 900 people, when the employees of the subcontractors continuously providing services to SSL are taken into consideration.  After the privatization, SSL fulfilled completely and in due time all its obligations and liabilities against the state organs, its own employees, customers and other 3rd parties. Our commitments were recognized by the ‘Investor of the Year 2010’ award, which was given to SSL by a state institution, namely Foreign Investment and Promotion Agency (FIPA).