It will have an annual caustic potash capacity of 425,000 tons. The market for caustic potash has tightened, starting in the third quarter of last year. Earlier this year, producers raised prices for the first time in two years. Potassium carbonate's leading use is the manufacture of glass for cathode ray tubes used in televisions and computer monitors. That sector has been growing at a 5 percent annual clip in recent years.
Demand is also strong for liquid dishwashing detergents and specialty fertilizers.
Although modest growth in line with GDP is likely to continue, any downturn in the US economy would be quickly reflected in the mature markets served by caustic potash and its derivatives. Advances in computer and TV screens, such as liquid crystal and plasma technologies and wide-screen television, could weaken caustic potash's potassium carbonate market. As a base, it is stronger than caustic soda, and its salts have greater solubility. But because it is more expensive to manufacture, its applications are limited to ones in which those properties are needed or that require the potassium cation. Growth should track gross domestic product.