WACKER plans to set up new polysilicon production facility in the United States

DJ WACKER plans to set up new polysilicon production facility in the United States

=------------------------------------------------------------------------------- 
  ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for 
  the content of this announcement. 
=------------------------------------------------------------------------------- 
 
February 26, 2009 - Wacker Chemie AG has mid-term plans to construct a new 
hyperpure polycrystalline silicon facility in the US and has purchased land in 
the State of Tennessee for this purpose. The Munich-based chemical group 
announced the decision today. The land in Bradley County covers approximately 
550 acres (220 hectares), offering adequate space for a new integrated 
silicon-based manufacturing site. The purchase price totals almost  $20 million. 
WACKER expects a mid-term investment in the Cleveland, Tennessee area of around 
$1 billion to set up the new plant, thereby creating about 500 new jobs. The 
size of the site, the availability of reliable power from the Tennessee Valley 
Authority (TVA), over-the-fence supply of chlorine from the adjacent OLIN 
Corporation facility and excellent transportation infrastructure made this an 
attractive site location. 
 
"We expect polysilicon demand from the solar and semiconductor industries to 
further increase in coming years," explained Rudolf Staudigl, President and CEO 
of Wacker Chemie AG. "Purchasing the land is an essential prerequisite to 
quickly build up additional production capacities outside the euro zone in line 
with the projected market trends and growth in demand." 
 
According to Staudigl, this site was chosen not only for its well developed 
infrastructure but also due to the outstanding support and cooperation made 
available by the Bradley County government offices, Bradley-Cleveland Chamber of 
Commerce and local businesses and the State of Tennessee. The package of 
incentives connected with the land purchase includes provisions for necessary 
transportation access and a reliable source for water and electric-based energy 
which are key resources associated with the production of hyperpure 
polycrystalline silicon. In addition, electrical energy costs in Tennessee are 
uniquely affordable, only about half the rated experienced at comparable sites 
in Germany. "Government officials at all levels, agencies and business 
associates from the State of Tennessee and Bradley County were extremely 
attentive to our business requirements, cooperative, and made every endeavor to 
support our plans," continued Staudigl. 
 
"This announcement further enhances Tennessee´s growing reputation as an 
innovation center in the development and manufacture of clean energy 
technologies," said Governor Phil Bredesen. "I appreciate WACKER´s investment in 
Tennessee and its recognition of the productivity of Tennessee workers, and I´m 
very pleased the company believes Tennessee is the best place to enhance its 
position in a growing economic sector." 
 
"In Tennessee, we believe renewable energy has the potential to transform our 
state's economy" said ECD Commissioner Matt Kisber. "Announcements in this 
sector have resulted in more than $2.5 billion dollars in new capital investment 
and over a thousand new jobs in the past year and we truly believe Tennessee is 
well-positioned for the growth of a sustainable economy in the U.S." 
 
WACKER POLYSILICON is currently the world´s second largest producer of hyperpure 
polycrystalline. WACKER has manufactured polysilicon for the semiconductor 
industry for over 50 years. To meet rising solar-silicon demand, WACKER 
POLYSILICON has steadily expanded its capacity and, since 2000, has supplied 
increasing volumes to the photovoltaics industry, too. 
 
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 
=------------------------------------------------------------------------------- 
 
 

(END) Dow Jones Newswires

February 26, 2009 02:00 ET (07:00 GMT)