Current Report No. 19/2017

Date of preparation: 2017-11-23

Abbreviated name of the Issuer: Ciech S.A.

Subject: Issuer’s decision to initiate the preparatory stage of a significant investment

Legal basis: Article 17.1 of the MAR – Inside Information

Report: 

The Management Board of CIECH S.A. with its registered office in Warsaw (the “Company” or “Issuer”) informs that today a decision has been made to initiate the preparatory stage of a significant investment.

The subject matter of the planned investment is the construction of an evaporated salt production plant in Germany, in the town of Stassfurt. The estimated production capacity of the plant is approx. 450 thousand tons of salt per annum. The investment will be implemented by a subsidiary of the Issuer – CIECH Soda Deutschland GmbH&Co.KG. in Germany.

The Management Board has decided to initiate the preparatory stage of the investment in connection with the planned development of the salt business outside Poland, following market and technological analyses which preliminarily confirmed the attractiveness of the project.

The preparatory stage of the investment will involve, among others: tendering procedures related to project implementation, including key technology bids, preparation of the plant design documentation, and obtaining administrative decisions. 

The value of the investment is estimated at about EUR 100 million, and the approximate time of its implementation is 2 to 3 years. The effects of completed investment will have a significant impact on the consolidated financial results of the CIECH Group.

The final decision will be made within the next few quarters and will depend, among others, on market conditions, ability to obtain relevant administrative decisions and/or granting public aid by competent German administration authorities.

Legal basis: article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1) (the “MAR”).

Signatures of persons representing the Company: 

Maciej Tybura – President of the Management Board 

Artur Osuchowski – Member of the Management Board