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Asahi Glass and Sumitomo To Establish
Joint Soda Ash Sales Company ( December 16, 2003 ) 
Asahi Glass Co., Ltd. [Overview]
[Background] In 1917, Asahi Glass began manufacturing synthetic soda ash at the Kitakyushu Plant in Fukuoka Prefecture as a material for in-house glass products. Later, it started to produce soda ash for sale. In 2001, the Company suspended domestic production of soda ash to improve overall profitability, and instead began to import natural soda ash from the United States. Since then, it has used imported soda ash for its own glass production and for sale. Sumitomo has meanwhile imported natural soda ash from the United States since 1983 for sale in Japan. Sumitomo and Asahi Glass have cooperated in operating some
of their soda ash import bases. Facing a difficult business
environment, the two companies have agreed to establish a
joint sales company in a bid to improve their profitability
by reducing costs through an integration of their distribution
systems and joint procurement. Soda ash is a common name for sodium carbonate, one of the
industrial chemicals. Half of the soda ash sold is used for
the production of glass products, while the remainder is widely
used by manufacturers of chemicals such as detergents, inorganic
chemicals and dyes, as well as by the steel industry. Domestic
demand for soda ash, which has been falling since it peaked
at 1.4 million tons in 1979, stood at 930,000 tons in 2002.
This downturn is attributable to a decline in the production
of plate glass amid fewer housing starts and declining demand
for glass for cathode-ray tubes as customers continue to shift
production overseas. It also reflects weaker demand for beverage
bottles given rising use of aluminum cans and PET bottles.
Meanwhile, imports of Chinese-made soda ash have been rising
in recent years, resulting in lower prices. |
