ANSAC will supply sodium carbonate, an input for glass manufacturing, to the Mexican company Vitro until December 2024.
The materials that are used in greater volume for the manufacture of glass are sand and sodium carbonate.
In order to maintain adequate supply for business needs, at the beginning of 2017, Vitro signed a supply contract with the company COVIA (formerly UNIMIN), which ends on December 31, 2023.
In this agreement, Vitro agrees to buy, and certain subsidiaries of COVIA agree to sell, the silica sand requirements at predetermined prices from Vitro’s plants in Mexico and the United States.
Contracts have also been negotiated that ensure the supply of sand for the different plants in that country.
In the case of soda ash, in September 2021 Vitro signed a new contract with ANSAC.
In this contract, ANSAC undertakes to supply 100% of the requirements of the float furnaces in García, Nuevo León, and the glass container plant in Toluca, State of Mexico, and in January 2020, Vitro’s Mexicali, Baja California plant is also incorporated.
The contract ends on December 31, 2024 and the price is predetermined.
In addition, Vitro has, in one of its subsidiaries, the capacity to produce sodium carbonate required for the manufacture of glass in Mexico.
For its plants in the United States, the company has similar contracts with suppliers such as Genesis and TATA, also expiring in December 2024.
Depending on whether any of Vitro’s subsidiaries requires silica sand or soda ash in qualities other than those contracted to produce, or different from those offered by its suppliers COVIA and ANSAC, these subsidiaries may require silica sand and soda ash of different providers in the United States.
There is no dependence on a single supplier for the raw materials used in your operation.
In October 2021, Vitro announced an investment of approximately 70 million dollars for the construction of a new furnace for Containers at its plant located in Toluca, with the purpose of compensating for the increase in demand for containers, and it expects that it will come into operation. operations during the first half of 2023.
Earlier, on June 22, 2021, Vitro announced an investment of approximately 120 million dollars for the construction of a new float furnace at the García, Nuevo León plant.