CIECH S.A. signed an agreement for the sale of 100% of shares of CIECH Żywice (Resins) with LERG S.A., thus finalising a transaction, the value of which is approx. PLN 160 million. The preliminary agreement was signed in July 2020, and the finalisation of the transaction required, among others, consent of the Office of Competition and Consumer Protection. The acquisition of CIECH Żywice by LERG is a long-term process whose first, formal stage will be completed on 1 March. The potential of CIECH Żywice allows LERG to continue the production of resins in Nowa Sarzyna and to further develop the technology and sales, already within the LERG Chemical Group.

For CIECH, the sale of its Resins business is the result of the implementation of the strategy for 2019-2021, the purpose of which is to maximise the Group's value for shareholders by focusing on the development of the main business lines with the largest scale of operations and a leading position on global markets. The review of strategic options for the Resins business began in autumn 2019, with the separation of CIECH Żywice from CIECH Sarzyna - a manufacturer of plant protection products operating in Nowa Sarzyna.

LERG, which becomes the owner of the CIECH’s Resins business, is a leading manufacturer of resins in Central Europe, specialising in the production of polyester resins. On the other hand, CIECH Żywice is the only manufacturer of epoxy resins in Poland and a supplier of polyester resins used, among others, in the dye industry, as well as other specialised products for many key sectors of the economy. In the last two years, CIECH Żywice has undergone a number of positive changes, among others, the expansion of its portfolio to include high-margin products, intended for prospective industries, as well as strengthening its activities in the R&D area. The company exports approx. 50 percent of its products, predominantly to European countries. CIECH Żywice is based in Nowa Sarzyna and employs approx. 240 people. In 2020, the Resins business generated PLN 278 million in revenues from third-party customers.

- A new chapter in the history of resin production in Nowa Sarzyna has just begun. The new owner - a Polish company, LERG, with a strong position on the European market - is a great opportunity, both in terms of expansion in Europe and effective competition on global markets and locally, for the community of Nowa Sarzyna and its vicinity. I am certain that the potential of the CIECH Żywice – both production and intellectual – will contribute to building a strong position of the Polish resin production industry. For the CIECH Group, it is yet another step in the implementation of our strategy and focus on the development of our core business lines. I would like to thank everyone involved in the preparation, execution and finalisation of this transaction in these extremely demanding times – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

Apart from production and export sales, LERG has its own research and development facilities, and also cooperates with many research centres. The company is characterised by high development dynamics, which in recent years has given rise to the creation of a strong, diversified chemical group with a global reach.

“The acquisition of CIECH Żywice is a continuation of our long-term strategy of building strong and safe LERG Chemical Group. With the acquisition of this company, we are able not only to expand our portfolio, to include, among others, the production of epoxy resins, but we also combine our business goals, vision and values, we expand our team of associates, and build up our experience and know-how. All this, combined, is an added value for our current and future customers in Poland and around the world” – says Agnieszka Kozubek-Bespalenko, Vice-President of the Management Board and CEO of LERG.