Current Report No.: 19/2019

Date of preparation: 28.05.2019

Abbreviated name of the Issuer: CIECH S.A.

Legal basis: Art. 17.1 of the MAR – inside information

Subject: The Issuer's decision to launch the preparatory phase of significant investments in the energy sector

Text of the Report:

In reference to Current Report No. 34/2018 of 5 December 2018, in which CIECH S.A. (the "Issuer" or "Company") advised on the adoption of the CIECH Group’s Strategy for 2019-2021 (the“Strategy”), the Company informs that today, the Management Board of the Company has decided to launch the preparatory phase of its significant investments in the energy sector (the “Project”).

The planned investments will be implemented by a subsidiary of the Issuer - CIECH Soda Polska S.A. (the "Subsidiary"), in its two locations: Janikowo and Inowrocław.

As part of the Project, the construction of new production sources powered by gaseous fuel is being considered.

The purpose of the planned investments in the Subsidiary is to increase the efficiency and availability of the energy sector, which will translate, among others, into an increase in the volume of soda production by limiting production losses and achieving steam production reserves. At the same time, the implementation of the energy mix will contribute to reducing CO2 emissions.

The preparatory phase of the investments involves, among others, tender proceedings related to the selection of the designer, preparation of project documentation, verification of the market conditions for the planned Project, and obtaining relevant administrative decisions.

The value of the aforementioned investments is estimated at approx. PLN 250,000,000 – 300,000,000. The estimated duration of these investments is approximately 3 years. The effects of the implemented investment will have a positive impact on the consolidated financial results of the CIECH Group.

The final decision on the implementation of the investment will be taken within the next few quarters and will depend, among others, on market conditions and obtaining relevant administrative decisions.   

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 the persons representing the Company:

Dawid Jakubowicz – President of the Management Board

Artur Osuchowski – Member of the Management Board