EANS-News: WACKER Closes Semiconductor Wafer Production in Japan

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Company Information

Subtitle: - 200 millimeter wafer and monocrystalline silicon ingot
production in Japan scheduled to be discontinued by mid-2012 -
Transfer of production volumes to Singapore and Portland (Oregon,
USA) sites will increase capacity utilization there, thus optimizing
fixed-cost coverage - Siltronic CEO von Plotho: “We are striving to
mitigate plant closure effects on employees as much as we can”

Munich (euro adhoc) - December 8 28, 2011 - Siltronic, Wacker Chemie
AG´s semiconductor division, intends to streamline its 200 mm wafer
production capacities. As a result, Siltronic plans to close its
production site in Hikari, Japan, by mid-2012. The Munich-based
chemical group announced this decision today. Hikari´s production
volumes shall be transferred to Siltronic´s existing 200 mm wafer
plants in Singapore and Protland (Oregon, USA), optimizing capacity
utilization at these sites´ facilities. The planned closure is
expected to involve expenses of some EUR70 million. Thereof, around
EUR45 million will be cash-relevant. These expenses had not been
included in WACKER´s most recent earnings forecast for fiscal 2011
which calls for earnings before interest, taxes, depreciation and
amortization (EBITDA) at last year´s level. Currently, Siltronic is
producing at its Hikari site wafers for the semiconductor industry as
well as monocrystalline silicon ingots, employing a staff of some
500. To ensure optimum support of its Japanese customers, Siltronic
will continue to employ a local sales force and application
engineering in Japan.

By closing its Hikari site, Siltronic continues with the structural
improve¬ments already successfully executed and adapts its production
capacities to market demand. Two years ago, Siltronic has implemented
a lead-site strategy enabling wafer production to be concentrated at
single sites according to individual diameters. This allows for a
flexible reaction on changing market trends. Discontinuing production
at Siltronic´s Hikari site translates into optimized utilization
rates at the company´s remaining 200 mm production facilities, higher
fixed-cost coverage as well as economies of scale, resulting in a
sustainably improved cost position.

"We are striving to mitigate effects on employees from the plant
closure as much as we can", says Dr. Christoph von Plotho,
Siltronic´s Chief Executive Officer. According to von Plotho,
Siltronic plans to offer its Hikari staff severance packages as well
as consultancy and support in their search for a new employment
outside the company. "At the same time, we are working hard to reap
the earnings benefits resulting from this step as fast as possible",
von Plotho continued.

About Siltronic Siltronic is a global leader in the market for
hyperpure silicon wafers and a partner to many top-tier chip
manufacturers. Wacker Chemie AG´s semiconductor division operates
production facilities in Europe, Asia and the USA. Siltronic develops
and manufactures wafers with diameters of up to 300 mm. Silicon
wafers form the basis of the modern micro and nanoelectronics. They
are used, for instance, in computers, smartphones, flat-panel
displays, navigation systems, automotive engine control systems and
many other applications.

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.

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
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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: regulated dealing/prime standard: Frankfurt, free trade: Hamburg,
Stuttgart, Düsseldorf, Hannover, München, regulated dealing: Berlin
language: English