Ciech

Szukaj
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Current Report No.: 16/2021

Commencement of the commissioning phase of a significant investment.

Current Report No.: 16/2021

Date of preparation:
 19.05.2021

Abbreviated name of the Issuer: CIECH S.A.

Subject: Commencement of the commissioning phase of a significant investment.

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


Report: 

The Management Board of CIECH S.A. with its registered office in Warsaw (the “Issuer”), in reference to its Current Reports No. 16/20 of 2 April 2020, No. 07/2018 of 27 April 2018, and No. 19/2017 of 23 November 2017, herewith informs that on 19.05.2021, the Management Board of CIECH Salz Deutschland GmbH (“CSLZ”) - a subsidiary of the Issuer, and the Management Board of the Issuer received information that the main construction part of the evaporated salt production plant in Staßfurt, Germany (the “Production Plant”) was completed today and information on the transition to the pre-commissioning phase of the salt production installation (the “Pre-Commissioning Phase”).

The transition to the Pre-Commissioning Phase is related to the production of the first batch of wet salt by the Production Plant, in compliance with the assumed parameters.

The Pre-Commissioning Phase will consist, among others, in the start-up of individual elements of the production line and the verification of their correct operation. The completion of the Pre-Commissioning Phase is scheduled for the end of the second quarter of 2021. After completion of the Pre-Commissioning Phase, the phase of gradual production increase will begin, which will involve attaining the assumed operating parameters of the plant. This stage should be completed by the end of September 2021.

The expected production capacity of the Production Plant is planned at the level of approx. 450 thousand tonnes of evaporated salt per annum. The target production capacity is planned to be achieved in 2022, along with the introduction of a full range of products into the offer, including, among others, salt for pharmaceutical applications.

The effects of the implemented investment will have a significant impact on the consolidated financial results of the CIECH Group and may generate approx. EUR 25 million in EBITDA on an annual basis, assuming the target production capacity is achieved.

During the Pre-Commissioning Phase, CSLZ will be selling trial and test batches of salt. The commercial launch of salt sales, due to the Pre-Commissioning Phase and continuing restrictions in Germany, is scheduled for the third quarter of 2021.

The Production Plant is one of the most modern facilities of this type in Europe, having access to its own sources of raw materials (brine) and a low-emission and efficient energy source.

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).

Signatures of the Company’s representatives:

  1. Dawid Jakubowicz – President of the Management Board
  2. Jarosław Romanowski – Member of the Management Board

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