On September 29th, 2009, the terms and conditions promised in the contract for sale and desalination of caverns concluded between Sodawerk Stassfurt, a 100% subsidy of Ciech, and RWE, German energy group, were fulfilled.
The contracts concluded on May 5th, 2009 provided for sale of mining rights of Stassfurter Salzsattel I and adjacent real properties and desalination of 4 caverns intended for storage of natural gas. The contract was to become effective provided that the local Mining Office consents to the transfer of property pursuant to the German Federal Mining Act.
The total value of the aforementioned contracts distributed for the years 2009-2019 accounts for approximately EUR 60 million. This year, revenues of the German company owned by Ciech Group from sale of mining rights under the aforementioned transaction will exceed EUR 16 million. In total, revenues of SWS from all transactions related to sale and desalination of caverns at the end of 2009 will exceed EUR 25 million.
– I am satisfied with finalisation of the contract – said Ryszard Kunicki, President of Ciech. – We will use the funds, among others, to refinance our debt.
Caverns created in salt deposits are used as warehouses to store crude oil and natural gas. There is a great demand for them since they are safe and relatively cheap.
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press release download:  Cavern sale transaction finalized |
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Ciech Chemical Group is the largest chemical concern in Poland and one of the leaders in the Central European market. It includes more than 30 companies, it is among one hundred largest economic organizations in Poland. The main Group’s products include soda Ash (second place in Europe), salt, phosphorus and multi-component fertilizers, epoxy resins and other organic chemical products used in the glassmaking industry, furniture industry, building industry and agriculture. With annual revenues of approximately PLN 3.8 billion, the Ciech Chemical Group is among one hundred largest Polish enterprises (49th position on “Lista 500” prepared by Polityka weekly magazine and 59th position on “Lista 500” prepared by Rzeczpospolita daily in 2007). As from February 2005, Ciech SA has been listed at the Warsaw Stock Exchange. The greatest shareholders of the company include the State Treasury (36.68 percent of shares and votes at the General Meeting of Shareholders), Pioneer Pekao Investment Management SA (18.77 percent) PZU "Złota Jesień" Open Pension Fund (6.12 percent). You can find more information at www.ciech.com
Media contact:
Krzysztof Grad, Spokesman of Ciech Chemical Group, Director of Communication Office of Ciech SA,
tel.: (+48 22) 639 13 18, mob.: 0 669 600 011, e-mail: krzysztof.grad@ciech.com |