Current report no.: 7/2018

Issuer’s decision to proceed with the implementation stage of a significant investment

Current report no.: 7/2018 

Date of preparation: 2018-04-27

Abbreviated name of the Issuer: CIECH S.A.

Subject: Issuer’s decision to proceed with the implementation stage of a significant investment 

Legal basis: Art. 17. 1 of the MAR – Inside Information

Contents of the report:

The Management Board of CIECH S.A. with its registered office in Warsaw (the “Company” or “Issuer”), with reference to current report no. 19/2017 of 23 Nov. 2017, informs that today a decision has been made to proceed with the implementation stage of a significant investment. The subject matter of the investment is the construction of an evaporated salt production plant in Germany, in the town of Stassfurt (the “Investment”). The investment is being implemented by a subsidiary of the Issuer – CIECH Soda Deutschland GmbH&Co.KG. in Germany (the “CSD”). 

As part of the preparation stage of the investment, a tender procedure was implemented, inter alia, for the delivery of key technology and the supplier of this technology has been selected and public aid was obtained from German administration authorities amounting to EUR 11.25 million. 

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 estimated production capacity of the plant is approx. 450 thousand tons of salt per annum. 

The investment will be financed with the funds of the CIECH Group and available external financing, including funds obtained by CSD as part of public aid. The effects of completed investment will have a significant impact on the consolidated financial results of the CIECH Group. 

Regardless of the decision to proceed to the implementation stage, CSD expects to obtain the appropriate administrative decisions necessary for the further implementation of the Investment. 

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 individuals representing the company:

Maciej Tybura - President of the Management Board
Artur Osuchowski – Member of the Management Board

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