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