CIECH is to diversify its sources of salt brine supply and continues talks with Gaz-System on the construction of a salt mine

CIECH S.A. companies and GAZ-SYSTEM have agreed on further terms and conditions of the joint venture involving the construction by GAZ-SYSTEM of a salt mine and a gas storage facility at the Damaslawek salt dome. Both entities have signed further documents: a term sheet and an agreement for the development of design documentation. This is yet another step in the implementation of the project, which is to ensure, in the long-term, diversification of sources of salt brine supply for the CIECH Group, i.e. a raw material for the production of soda ash and salt.


The term sheet is a document detailing terms and conditions of further cooperation, including, in particular, a schedule and general financing principles for individual stages of the investment, as well as key assumptions with regard to commercial cooperation after the implementation and commissioning of the salt mine and the gas storage facility. The second document is an agreement for the preparation of the design documentation for the individual investment elements.


- This is yet another step in the joint development of the project, which entails, for the CIECH Group, the ability to diversify its salt brine sources in the long term. The executed documents contain arrangements concerning investment conditions and further cooperation. They form the basis for the preparation of specific investment and commercial agreements. The implementation of this investment is good news for the glass production industry located in Poland and using our soda, which generates approx. PLN 11 billion in value-added to Poland's GDP and employs more than 30 thousand people1 – says Dawid Jakubowicz, President of the Management Board of CIECH.


For CIECH, participation in this project means diversification of the sources of salt brine supplied to the Group's plants. As per current assumptions, CIECH will co-finance the construction of the transmission infrastructure from the mine and the underground gas storage facilities, enabling salt brine transport to its production plants. According to preliminary assumptions, the estimated value of the investment in such infrastructure may amount to approx. PLN 450 million, and the proportion of the co-financing share of both parties will be determined through negotiations and defined in the investment agreement. The agreement is to be signed after specific prerequisites have been met, such as the location decision for the transmission infrastructure becoming final and effective, and the corporate approvals obtained by the parties.


According to the provisions of the term sheet, both parties intend to enter into an agreement for the supply of salt brine to CIECH plants for 20 years, with the right to extend such period for another 15 years. The salt brine price defined in the agreement is to take into account the financial involvement of CIECH in the construction of transmission infrastructure. The execution of the salt brine supply agreement will be one of the conditions for launching investment funds. Other conditions include obtaining any necessary approvals and permits, as well as stipulations aimed at securing the right of both parties to reimburse incurred expenditure.


Salt brine obtained from underground gas and crude oil storage facilities is the basic raw material in the production of soda ash and evaporated salt - the pillars of the product offer of the CIECH Group. In Polish and Romanian soda plants, CIECH acquires salt brine from third-party suppliers, and in the case of the German soda factory, it has its own source of this raw material.




Mirosław Kuk, Press Spokesperson of the CIECH Group, tel. +48 723 66 86 86


CIECH is an international, expanding chemical group, with a strong standing on European and global markets and with a stable strategic investor (Kulczyk Investments). The company exports its products to over 100 countries around the world, including soda ash, purified soda, salt, plant protection agents, epoxy and polyester resins, polyurethane foams, silicates, and glass packaging. CIECH manufactures products of the highest, world-class quality, which are further used to produce articles which are essential in the everyday life of people all over the world. At the same time, it combines a modern approach to business with the tradition of production which dates back to 1882. Since 2005, the company has been listed on the Warsaw Stock Exchange and, since 2016, on one of the largest stock exchanges in Europe: Börse Frankfurt. More information is available at

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