Current report no : 40/2012
Report date : 10/12/2012
Abbreviated name : Ciech SA
Subject : Termination of a significant agreement by a subsidiary of the Issuer
Legal basis : Article 56 section 1 item 2 of the Act on the Offering – current and interim information
Report :
The Management Board of Ciech SA [Issuer] reports that on October 12th, 2012 the Issuer's subsidiary Zakłady Chemiczne Zachem SA [Zachem] submitted a termination notice for the agreement on supply on amine (TDA) concluded with Air Products Chemical Europe B.V. and Air Products LLC [Air Products], on which the Issuer reported in current reports no. 63/2007 and 4/2010, and called Air Products to remedy the breach of the agreement within 60 calendar days following the date of receiving the termination notice. The reason for terminating the agreement was the breach of the agreement by Air Products, among others, by way of cessation of supplies of amine (TDA) from the factory in Pasadena and the failure to assure Zachem about the possibility of subsequent performance of amine (TDA) supplies from the factory in Pasadena. Amine is used for production of TDI (toluene diisocyanate – the main product manufactured by Zachem), which is a component used, among others, in the production of polyurethane foams used in the furniture and automotive industry, as well as for production of insulating materials and varnishes. The agreement shall be terminated after 60 calendar days following the date of Air Products receiving the termination notice from Zachem unless Air Products remedies the breach of the agreement prior to expiration of the term of notice or Zachem withdraws its termination notice. Taking into consideration the date of submitting the termination notice by Zachem, the agreement with Air Products may be terminated after December 11th, 2012. The Issuer and Zachem do not consider it necessary to create provisions for liabilities or make write-downs on assets in connection with termination of the agreement with Air Products. The termination of the agreement may result in a decrease in revenues at the level of the Issuer's Capital Group. The Issuer shall report on terminating the agreement, remedying the breach of the agreement by Air Products or withdrawing the termination notice by Zachem in a separate current report. Legal basis: Article 56 section 1 item 2 of the Act of July 29th, 2005 on Public Offering and the Conditions for Introducing Financial Instruments to Organised Trading and on Public Companies and § 5 section 1 item 5 of the Ordinance of the Minister of Finance of February 19th, 2009 on Current and Periodic Information Provided by Issuers of Securities and the Conditions of Recognising as Equivalent Information Required by the Law Provisions of a Country which is not a Member State.
Signatures of the Company's representatives : Andrzej Kopeć – Member of the Management Board
Signatures of the Company’s Representatives : Artur Osuchowski – Member of the Management Board
