Martin 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.
Bob 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.
“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.”
Assuming 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.
The Partnership will fund the capital improvements and the contribution to DSM through a long-term land lease and using available capacity under its revolving credit facility.
About Martin Midstream Partners
Martin Midstream Partners L.P. is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business lines include: (1) terminalling, processing, storage, and packaging services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) natural gas liquids marketing, distribution, and transportation services.
Additional information concerning Martin Midstream is available on its website at www.MMLP.com.
About Samsung C&T America
Samsung C&T America, Inc. (SCTA), is a global trading and investment company that functions as an independent American subsidiary of the Samsung C&T Corporation Trading & Investment Group. Since the subsidiary was opened in New York in 1964, SCTA has been engaged in the trading of industrial materials and operates thermal power generation and renewable energy projects across North, South, and Central America. The Trading & Investment Group operates globally in trading and project organizing with a network of 70 offices in 42 countries. It pursues and develops businesses around the world in the areas of chemicals, steel, energy, and materials.
About Dongjin Semichem Co., Ltd.
Dongjin Semichem Co., Ltd. is a publicly traded global manufacturer of fine chemicals headquartered in Seoul, Korea. With operations across Asia, Europe, and the United States, Dongjin holds an industry-leading portfolio of products for diverse applications in the electronic materials industry. Dongjin’s major product lines include display materials, semiconductor materials, and renewable energy materials. The company also operates a separate business unit specializing in foaming agents. Since its founding in 1967, Dongjin has been committed to enabling technological development as a pioneer of the Korean fine chemical industry.
Sharon Taylor – Chief Financial Officer