EANS-News: WACKER secures Financing for Polyisilicon Expansion via a new EUR400 Million Loan
- EUROPEAN INVESTMENT BANK APPROVES A 400 MILLION LOAN TO FINANCE THE NEW POLYSILICON-PRODUCTION PROJECT IN NÜNCHRITZ, SAXONY (GERMANY) - SOME 450 NEW JOBS TO BE CREATED VIA INVESTMENTS OF AROUND 800 MILLION - WACKER CFO JOACHIM RAUHUT: THIS LOAN APPROVAL IS A KEY COMPONENT IN OUR FINANCING PLAN FOR THIS STRATEGIC GROWTH PROJECT
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finances
Munich / Luxembourg (euro adhoc) - May 14, 2009 - The European Investment Bank (EIB) has approved a long-term EUR400 million loan to finance Wacker Chemie AG´s new Nünchritz (Saxony) polysilicon production facility. The Munich-based chemical company announced the decision today. EIB´s Management Committee and Board of Directors have already approved granting of the loan and the contractual details are to be signed in the next few weeks. WACKER has budgeted investments totaling some EUR800 million for its new Nünchritz polysilicon production plant. The facility is expected to create around 450 new jobs.
"The EIB´s loan approval is a key component in our financing plan for this strategic growth project," said WACKER CFO Joachim Rauhut. "It ensures that we retain sufficient financial flexibility - in light of the current difficult economic situation - to move forward with the expansion of our polysilicon production facility as planned." At the same time, Rauhut continued, EIB conditions were attractive compared to conventional bank loans or bonds. "I view the loan´s approval as confirmation of WACKER´s high creditworthiness and as further proof of the close working relationship that we have maintained with the EIB for many years," the CFO stressed.
The new polysilicon facility at the Nünchritz site has a nominal capacity of 10,000 metric tons per year and is set for commissioning in 2011. Thanks to these steps, as well as other ongoing expansion measures at the Burghausen site, WACKER´s polysilicon capacity will reach 35,500 metric tons annually, compared to today´s 15,000 metric tons. This expansion will enable WACKER to meet the increasing global demand it expects for hyperpure polycrystalline silicon. For coming years, WACKER anticipates continued double-digit annual growth in solar-sector polysilicon demand.
This press release contains forward-looking statements based on assumptions and estimates of WACKER´s Executive Board. Although we assume the expectations in these forward-looking statements are realistic, we cannot guarantee they will prove to be correct. The assumptions may harbor risks and uncertainties that may cause the actual figures to differ considerably from the forward-looking statements. Factors that may cause such discrepancies include, among other things, changes in the economic and business environment, variations in exchange and interest rates, the introduction of competing products, lack of acceptance for new products or services, and changes in corporate strategy. WACKER does not plan to update the forward-looking statements, nor does it assume the obligation to do so.
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Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: christof.bachmair@wacker.com
Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
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Börsen: Frankfurt / regulated dealing/prime standard
Original content of: Wacker Chemie AG, transmitted by news aktuell