EANS-News: WACKER optimizes its global production network

- CONCENTRATION OF INDIVIDUAL WAFER DIAMETERS AT LEAD SITES AND
STRUCTURAL IMPROVEMENTS AT WACKER SILICONES
- IMPAIRMENTS OF SOME
€120 MILLION AT SILTRONIC, EXPECTED REDUCTION OF NEARLY 800 JOBS AT
SILTRONIC AND WACKER SILICONES BY END OF 2010
- CONTROL AND PROFIT
TRANSFER AGREEMENT BETWEEN SILTRONIC AND WACKER REDUCES TAX RATE
-
PERSONNEL DIRECTOR SITTENTHALER: “I SEE A GOOD CHANCE OF IMPLEMENTING
THE PLANNED JOB CUTS WITHOUT LAYOFFS”
- CURRENT TRADING CONDITIONS:
EBITDA IN Q2 2009 BETTER THAN IN Q1

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Munich (euro adhoc) - July 8, 2009 - Wacker Chemie AG intends to
introduce a new site strategy to increase flexibility and further
optimize the integrated production network of its Siltronic
semiconductor subsidiary. Silicon wafer production is to be
concentrated at lead sites according to individual diameters. This
was decided today by the relevant WACKER Group committees.

Currently, Siltronic produces the same wafer diameters at several
sites worldwide. Concentrating on individual diameters at lead sites
will increase future plant capacity utilization and, in turn, improve
Siltronic´s cost structure, as well as pool individual-diameter
production know-how at lead sites. This approach involves, for
example, discontinuing 150 mm wafer production at Freiberg and
transferring these production volumes to Burghausen. In the 300 mm
wafer segment, the Burghausen site is expected to become the focus of
R&D-related tasks, with production being pooled at Freiberg and
Singapore. Singapore will become the lead site for 200 mm wafers,
too. The new site strategy along with the expected development of the
semiconductor market results in impairments on fixed assets totaling
some EUR120 million, which will be accounted for in the financial
statements for the first half of 2009.

In addition to these realignments at Siltronic, WACKER will also
implement structural improvements at WACKER SILICONES targeting at
cost reductions, higher flexibility and improved plant capacity
utilization. Compared to March 31, 2009, all these measures are
expected to cut nearly 800 positions at Siltronic and WACKER
SILICONES by the end of 2010. WACKER has already found a solution for
450 of the employees affected. To implement the remaining job cuts,
WACKER will book provisions totaling about EUR15 million in Q2 2009.
Since mid-2008, Siltronic has already reduced its workforce by some
550 employees, including external temporary workers.

"Our goal is to implement the planned job cuts without layoffs - and
I see a very good chance we will succeed," says WACKER´s Executive
Board Member and Personnel Director Dr. Wilhelm Sittenthaler. "In the
next two years, we will have additional personnel needs at the Group,
especially due to the extension of our polysilicon business. And we
will, of course, primarily consider our existing staff for these
jobs," stressed Sittenthaler. As a result, he said he remained
confident that the necessary job cuts at the semiconductor and
silicone businesses could be implemented in a socially-acceptable
manner via natural fluctuation, semi-retirement and severance
packages.

In addition, a control and profit transfer agreement will be executed
between Siltronic AG and Wacker-Chemie Dritte Venture GmbH, a
wholly-owned subsidiary of Wacker Chemie AG. Since such an agreement
already exists between Wacker-Chemie Dritte Venture GmbH and Wacker
Chemie AG, profits and losses at Siltronic can now be netted with
Wacker Chemie AG´s resulting net income. WACKER expects this
agreement to have a positive effect on 2009´s after-tax income
ranging in the higher double-digit euro millions.

The Group views the agreed measures as an important step to counter
the impact of the economic crisis on the company and further ensure
WACKER´s competitiveness. "WACKER´s business in Q2 2009 was in line
with our expectations," said CFO Dr. Joachim Rauhut. "Sales picked up
compared to Q1, though price pressure has grown in all segments. Q2
Group EBITDA will be better compared to the first three months of
fiscal 2009. For our semiconductor business, we again expect an
operational loss in Q2, though it should be somewhat lower than in
Q1. The earnings situation at WACKER POLYSILICON continues to remain
attractive."

Wacker Chemie AG will publish its Q2 report on July 30, 2009.

This press release contains forward-looking statements based on
assumptions and estimates of WACKER´s Executive Board. Although we
assume the expectations in these forward-looking 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
forward-looking statements, nor does it assume the obligation to do
so.

end of announcement euro adhoc
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ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Christof Bachmair

Media Relations & Information

Tel.: +49 (0)89 6279 1830

E-Mail: christof.bachmair@wacker.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard