WACKER expands polysilicon production at its Burghausen site to 21,500 metric tons per year

* DECISION TO EXPAND NOMINAL PRODUCTION CAPACITY BY ANOTHER 7,000 METRIC TONS PER YEAR
* CAPITAL EXPENDITURES OF ABOUT €400 MILLION ARE ESTIMATED TO CREATE SOME 200 JOBS
* CEO PETER-ALEXANDER WACKER: “CAPACITY EXPANSION REFLECTS STRONG CUSTOMER DEMAND”

WACKER plans to expand its annual polysilicon production capacity at its Burghausen site by an additional 7,000 metric tons to a total of 21,500 metric tons per year. Combined with production expansion measures already under way, WACKER’s nominal production capacity will more than triple from currently 6,500 metric tons per year. The first material for sale from the new, so-called “capacity expansion stage 8” is expected to be available as early as Q4 2009.
The new plant is scheduled to reach full capacity by 2010. WACKER has earmarked capital expenditures of around €400 million for this project, which is expected to create some 200 new jobs.
By expanding its output, WACKER intends to meet soaring global demand for hyperpure polycrystalline silicon. The main growth driver is the solar industry, which requires silicon for the manufacture of solar cells.
WACKER forecasts further solar-market growth over the next few years. Consequently, it expects solar-sector polysilicon demand to increase at an annual double-digit rate. As for the electronics sector, WACKER is expecting a rise of polysilicon demand by almost 10 percent a year.
“Today’s expansion decision reflects the continuously strong demand of our polysilicon customers,” said Dr. Peter-Alexander Wacker, the Group’s president and CEO. “We are already the world’s second-largest polysilicon producer. By heavily increasing our capacities, we intend to keep narrowing the gap on the market leader. Also, we consider this project a major contribution to accelerate growth in the solar industry,” added the CEO.
“Thanks to its advanced infrastructure and integrated production systems, Burghausen proved to be the best location for this capacity expansion – from both an economic and technical point of view,” explained Ewald Schindlbeck, President of WACKER POLYSILICON. “An especially important factor in Burghausen’s favor,” he added, “is the short time needed to complete the new facility there.”