GREEN RIVER - Wyoming producers accounted for about 35 percent of the global soda ash production in 2005, but still face stiff competition from China and other Asian producers, according to federal figures.

Wyoming producers also accounted for more than 95 percent of domestic soda ash production, said Dennis Kostick, a soda ash analyst with the U.S. Geological Survey.

Kostick predicted domestic demand this year may be slightly higher than in 2005.

The total value of domestic soda ash produced in 2005 by Wyoming's four soda ash operators and a small operator in California was estimated to be about $905 million, according to year-end soda ash production figures.

In 2004 the total value was estimated at about $820 million, and in 2001 about $780 million.

Kostick said increased soda ash sales in the domestic and export markets in 2004 continued into 2005 and resulted in several soda ash price increase announcements by Wyoming producers.

He said from May 2004 until September 2005, there was a cumulative off-list price increase of $60 per ton for Wyoming soda ash, which accounted in part for the increased value of the product in 2005.

In June 2005, FMC Wyoming Inc.'s soda ash plant in Granger that was mothballed several years ago was restarted at a reduced annual nameplate capacity of 200,000 tons, according to Kostick.

The company discontinued trona mining and soda ash production at the Granger operation in May 2001 in an effort to reduce the especially high energy costs at the time. FMC employs about 650 miners and production workers at its Westvaco plant west of Green River.

Kostick said the decision to reactivate some of the original 1.3 million-ton capacity at the Granger facility was made because of the forecast increase in domestic consumption, particularly in glass for automotive and building construction, and the growth of the export market that began in early 2005.

Kostick said overall, global demand is expected to grow from 1.5 percent to 2 percent annually for the next few years.

The report estimated that glass accounted for 50 percent of the distribution of soda ash by end use, followed by chemicals at 26 percent and soap and detergents at 11 percent.

Kostick said investing in new soda ash plants in Asia and China appears to be favorable at this time, primarily due to an upturn in global soda ash prices beginning in early 2005.

He said last year, a major glass company in China postponed its decision to construct a large, flat-glass manufacturing facility because of difficulties in obtaining bank loans.

Other new manufacturing plants in China, however, were able to secure financing for new plant construction, such as the facility in Dalingha City, Qinghai Province. Kostick said that facility will have an annual capacity of 1.8 million tons.

Southwest Wyoming bureau reporter Jeff Gearino can be reached at 307-875-5359 or at gearino@trib.com.