Iofina PLC on Friday said it was optimistic about opportunities for expanding iodine production in Western Oklahoma.
Iofina has finalised terms with a new brine supply partner for the construction of its latest iodine plant in the region.
Iofina is a Colorado, US-based manufacturing company that specializes in the production of iodine and the manufacture of speciality chemical derivatives. With operations in Kentucky and Oklahoma, Iofina is focused on constructing iodine extraction plants based on its Iosorb technology.
Construction for the newest iodine plant, the terms of which have just been agreed, is expected to complete in six months.
Iofina has pre-ordered major items and secured contractors in advance so as to minimise the impact of potential supply chain disruptions and expedite the construction process.
It was confident that expansion to the western region of the state would help to create a new ‘core region’ for the company, and said plans were already underway for a second plant in the area.
Once completed, Iofina expects the IO9 plant to immediately contribute to cash flow. Full payback of costs is anticipated in less than 2 years, with production of crystalline iodine targeted between 100 and 150 metric tonnes per year.
A $2.7 million, seven-year term loan from Iofina’s banking partner, confirmed in July, is paying for the project.
Meanwhile, production at Iofina’s other five Oklahoma facilities was in line with expectations for the third quarter. The plants produced 143 metric tonnes of crystalline iodine combined, and the company said it was on track to produce 255 to 275 metric tonnes in the second half of the year.
‘We are delighted to have agreed on the terms to construct our newest iodine plant, IO9, in Western Oklahoma, enabling us to move forward with our next growth phase. With our current IOsorb facilities operating at expected rates, the addition of IO9 will deliver a major step change in our overall iodine production’, said Chief Executive Officer Tom Becker.
‘IO9’s construction will be underway shortly, whilst the relocating of the decommissioned IO5 plant will help to both accelerate the project and keep costs down.’
Iofina shares were trading 3.1% higher at 21.91 pence each in London on Friday morning.
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