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Highlights:
- New Facility Announcement: Iofina plans to build the IO11 iodine production plant in Western Oklahoma, enhancing its iodine production capabilities.
- Strategic Collaboration: The plant will be developed with a brine water supply partner and is positioned near existing facilities to optimize resource use.
- Optimized Production Technology: Utilizing Iofina's ‘IOsorb’ technology, the plant is expected to be operational by 2025, contributing to the company's growth in iodine production.
Iofina (LSE:IOF) announced on Friday the establishment of a new iodine production facility, named IO11, located in Western Oklahoma. This strategic development is set to enhance the company's iodine production capabilities and is part of its ongoing efforts to expand in key regions.
The new plant will be developed in collaboration with an established brine water supply partner and will be situated near Iofina's existing IO9 and IO10 facilities. The location was selected due to its robust brine supply and its proximity to significant oil and gas operations in the area, which are expected to facilitate the production process.
IO11 will utilize Iofina's proprietary ‘IOsorb’ technology to extract iodine from brine water. The company anticipates that the plant will commence operations in 2025, marking a significant milestone in its expansion plans. Iofina is currently finalizing the design of the plant in conjunction with its partner, aiming to optimize iodine production capacity.
While specific details regarding the plant's capacity and construction costs are yet to be disclosed, they will be released once the design phase is complete. The financing for the project will primarily come from the company's existing cash resources, with the option to utilize loan facilities if necessary.
Dr. Tom Becker, president and chief executive officer of Iofina, expressed enthusiasm about the new project, stating, “We are pleased to announce that an agreement has been signed with our chosen brine water partner for our next plant, IO11, in our newest core area in Oklahoma. This continues our recent track record over the past three years of increased growth rates in iodine production, as we believe this is the optimal strategy to help drive long-term value for the company and its shareholders.”
As of 10:20 BST, shares of Iofina saw an uptick of 6.18%, trading at 20.44p, reflecting positive market sentiment regarding the company's growth trajectory.
This new iodine production plant signifies Iofina's commitment to enhancing its operational efficiency and expanding its production capacity in response to the growing demand for iodine in various applications.
