Wacker Chemie AG

EANS-News: Siltronic Adapts Capacity for 150 Millimeter Silicon Wafers to Market Demand

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Company Information

Subtitle: - Production of 150 millimeter silicon wafers at Portland (Oregon,
USA) to be discontinued in third quarter of 2012
- Personnel capacity to be reduced for 150 millimeter wafers at Burghausen
- Siltronic’s CEO von Plotho: “Consolidating 150 millimeter wafer production at
one site increases plant utilization, improving our fixed-cost coverage”

Munich (euro adhoc) - March 9, 2012 - Siltronic, the semiconductor subsidiary of
Wacker Chemie AG, intends to streamline its production capacity for 150
millimeter silicon wafers. For this reason, Siltronic is planning to stop
producing this wafer diameter at Portland (Oregon, USA) in the fall of 2012. The
Munich-based chemical Group announced this today. The decision means that
Portland´s current workforce of some 750 will be reduced by about 350. The
affected personnel will receive severance packages. Siltronic will continue to
produce 200 mm wafers at Portland.

At Burghausen (Germany), Siltronic is also adapting its 150 millimeter wafer
line to the permanently low level of demand. Due to this process and other steps
to increase productivity, there will be about 150 job cuts at the site.
Implementation of the measures is scheduled for this year. The job cuts are to
be made without involuntary layoffs, primarily by offering those affected jobs
at the Group´s other units in Burghausen. The exact details of the plan are
currently being discussed with employee representatives.

"Consolidating 150 millimeter wafer production at Burghausen, while reducing
personnel capacity there at the same time, enhances plant utilization at this
site, improving our fixed-cost coverage," explained Christoph von Plotho,
Siltronic´s president and CEO. As a result, Siltronic anticipates an overall
earnings improvement of about EUR30 million per year, starting 2013. These
measures are expected to cause non-recurring expenses of about EUR15 million,
which will be reflected in EBITDA (earnings before interest, taxes, appreciation
and amortization).

By consolidating its 150 millimeter capacities, Siltronic is building on the
structural improvements already made and adapting output to market demand. In
doing so, Siltronic is pursuing its lead-site strategy, adopted three years ago,
to concentrate silicon-wafer production at single sites according to diameter.

This press release contains forward-looking statements based on assumptions and
estimates of WACKER´s Executive Board. Although we assume the expectations in
these forward­looking statements are realistic, we cannot guarantee they will
prove to be correct. The assumptions may harbor risks and uncertainties that may
cause the actual figures to differ considerably from the forward-looking
statements. Factors that may cause such discrepancies include, among other
things, changes in the economic and business environment, variations in exchange
and interest rates, the introduction of competing products, lack of acceptance
for new products or services, and changes in corporate strategy. WACKER does not
plan to update the forward­looking statements, nor does it assume the obligation
to do so.

Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: christof.bachmair@wacker.com

end of announcement                               euro adhoc 

company:     Wacker Chemie AG
             Hanns-Seidel-Platz 4
             D-81737 München
phone:       +49 (0) 89 6279 01
FAX:         +49 (0) 89 6279 1770
mail:     info@wacker.com
WWW:      http://www.wacker.com
sector:      Chemicals
ISIN:        DE000WCH8881
indexes:     MDAX, CDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart,
             regulated dealing: Berlin, regulated dealing/prime standard:
language:   English

Weitere Meldungen: Wacker Chemie AG

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