Business
Martin Midstream Partners L.P. Announces Joint Venture with Samsung C&T America, Inc. and Dongjin USA, Inc. to Produce Electronic Level Sulfuric Acid
KILGORE, Texas--(BUSINESS WIRE)-- Martin Midstream Partners L.P. (NASDAQ: MMLP) (“MMLP” or the “Partnership”) announced today that, through an affiliate
About this update from Martin Midstream Partners L.p.
[{"type":"text","content":" KILGORE, Texas--(BUSINESS WIRE)--\nMartin Midstream Partners L.P. (NASDAQ: MMLP) (“MMLP” or the “Partnership”) announced today that, through an affiliate Martin ELSA Investment LLC, it has entered into definitive agreements with Samsung C&T America, Inc. and Dongjin USA, Inc., an affiliate of Dongjin Semichem Co., Ltd., to form DSM Semichem LLC (“DSM”). DSM will produce and distribute electronic level sulfuric acid (“ELSA”). By leveraging the existing assets of MMLP located in Plainview, Texas and installing additional facilities (the “ELSA Facility”) as required, DSM will produce ELSA that meets the strict quality standards required by the recent advances in semiconductor manufacturing. In addition to owning a 10% non-controlling interest in DSM, the Partnership will be the exclusive provider of feedstock to the ELSA facility. MMLP, through its affiliate Martin Transport, Inc., will also provide land transportation services to end-users of the ELSA produced by DSM.\n\nBob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of MMLP stated, “We are excited to partner with Samsung C&T America, Inc. and Dongjin USA, Inc. in this unique opportunity to capitalize on the diverse and complimentary skillsets, operating expertise, and vast market knowledge of the three parties. The new facilities will incorporate technology currently being utilized to produce ELSA in Taiwan, which exceeds the quality of sulfuric acid being produced in the United States today.\n\n“This strategic alliance allows the Partnership to capitalize on our existing asset base to participate in the manufacturing and transportation supply chain of the most advanced and power-efficient chip technology to date. ELSA supply presently sourced in the U.S. does not meet current domestic demand, and with announced new fabrication and existing fabrication facility expansions, we anticipate an attractive market for the ELSA produced in Plainview.”\n\nAssuming growth capital investments of approximately $20 million, the Partnership expects to realize annual distributable cash flow of $5 to $6 million from both the improvements to the existing assets and its interest in DSM. The ELSA facility is estimated to start-up in the first quarter of 2024.\n\nThe Partnership will fund the capital improvements and the contribution to DSM thro...