The Management Board of Ciech S.A. hereby informs that on 7 December 2009 the negotiation stage was completed and the contracts were signed for consolidated purchase of electricity in the TPA system in 2010 by the Group Companies. The electricity supplier will be PGE ZEŁT Obrót Sp.z.o.o., with which the Ciech Group Companies: ZCh Zachem S.A., ZCh Organika-Sarzyna S.A., GZNF Fosfory Sp.z.o.o., ZCh Alwernia S.A., Vitrosilicon S.A. executed contracts for 2010.
The total electricity volume will exceed 450 thousand MWh, and its total value for the Ciech Group Companies will be about PLN 103 million net, which exceeds 10% of the Issuer’s equity. The supplies will be supplemented by an in-house electricity generation by the CHP’s owned by a Group company - Soda Polska Ciech – which will contribute about 450 thousand MWh.
The negotiated conditions of energy purchase in the TPA system for 2010 will generate about PLN 10 million of savings in comparison to current purchase costs. The negotiated payment terms which are twice as long will also improve financial liquidity of the majority of the Group’s companies. The optimization of the electricity purchase costs will contribute to improved financial ratios of the Ciech Chemical Group Companies.