A company of the CIECH Group, CIECH Saltz Deutschland, involved in a salt business in Germany, has signed a contract with a value EUR 44 million for the construction and installation of facilities in a new evaporated salt plant, which is being developed in Stassfurt, near the soda ash factory owned by CIECH. This is the largest investment in the history of CIECH, the commissioning of which will place the Group among the leaders on the European market for evaporated salt. The production capacity of the developed evaporated salt plant is 450 thousand tonnes per year, and the operation of the new plant may increase the Group's EBITDA by approx. EUR 25 million per annum. Currently, the production launch date in the new plant is scheduled for 1 January 2021.

The Company also informed that as part of the implemented investment, it had received offers for the vast majority of works related to the construction of the new evaporated salt plant. Due to the observed increase in the costs of construction and installation work and materials, compared to the original assumptions from November 2017, the total value of the investment may amount to approx. EUR 140 million. In connection with the current negotiations of binding offers, the value of the investment could be reduced.

The evaporated salt plant in Stassfurt will be a modern production facility, operating in a completely different technology than the salt production facility in Janikowo. The factory, where approximately 100 people will be employed, will offer a wide range of salt products, including electrolysis-grade salt, salt tablets, salt granules or pharmaceutical-grade salt.

In total, after the new production facility has been commissioned, the CIECH Group will produce 1 million tonnes of evaporated salt per annum and become one of its largest European manufacturers.

The advantage of the German location of the new salt production facility is the availability of its own sources of raw materials (salt brine) and a very convenient location, allowing expansion in attractive Western European markets.

Contact:

Mirosław Kuk, Spokesperson

miroslaw.kuk@ciechgroup.com, tel. +48 723 66 86 86.