Press releases

Sale of subsidiary Ciech Service, appointment of the Management Board for the next term of office and completion of formalities concerning loan agreements with banks – the Ciech Chemical Group consistently attains the reorganisation goals.

In the execution phase of the reorganisation, including without limitation sale of assets included in the core business and unnecessary assets, Ciech S.A. signed a sales contract with Ciech Service Sp. z o.o. today. The sales contract accounts for PLN 3 million, for which Sotronic Sp z o.o.  seated in Kraków purchased from Ciech 100 percent of shares in the service-rendering company. Ciech Service has 13 years of experience in people and property security and maintenance services. Currently, the main customers of Ciech Service include companies of the Ciech Group. The company has local offices in 5 cities.
- Sale of Ciech Service is the first finalised transaction under the programme of the sale of assets included in Ciech’s core business. The sale of Ciech Service and several other companies began more than a year ago, before negotiations with banks concerning finance restructuring. Now it is time to finalise those transactions – said Ryszard Kunicki, President of the Ciech Chemical Group. – Although it took some time, now I may say that I am satisfied with the amount negotiated. Also in the future assets will be sold for a good price only – he added. Within the framework of reorganisation, the Group considers sales of, among others, PTU, Gdańsk Fosfory, Alwernia, Vitrosilicon, Pofla, Cheman, Transclean and Transoda.

Operating reorganisation

In connection with expiry of the term of office, the shareholders appointed an extended Management Board to implement the reorganisation plan of the Ciech Chemical Group. The following people were appointed for the next term of office: Ryszard Kunicki – President of the Management Board and Artur Osuchowski, Marcin Dobrzański, Rafał Piotr Rybkowski and Andrzej Bąbaś. The slightly changed composition of the Management Board guarantees continuity of implementation of the strategy. It also expresses recognition for the current achievements thereof and a positive assessment of the plans presented. The duties of Robert Bednarski, former member of the Management Board in charge of the finance of the Ciech Group, will be assumed by Rafał Rybkowski, specialist with extensive experience in corporate finance management. At the same time, Robert Bednarski was offered to lead one of the key projects of the Reorganisation Plan – initial public offering of the soda part. In accordance with warranties and intention of the main shareholder – the State Treasury – appointment of an additional person as a member of the Management Board will not increase the costs of activities incurred by the Management Board.
In addition to the strategic activities, including disinvestments, or organisational changes, Ciech and the Group’s companies are reorganised on the on-going basis in terms of operations by reduction in the costs of activities, among others, as a result of implementation of another stage of optimisation of the electric energy costs being the main item of the Group’s production costs. Due to common energy purchases pursuant to TPA and reasonable management, the Group may ultimately save up to several million zloty a year. Also a project reducing the costs of traffic maintenance has been recently launched at Zachem, one of the largest production companies of the Group, and investments aimed at reduction in energy costs have been implemented at Soda Polska Ciech. – In the scale of the entire Group, these are often difficult and long-term, but necessary activities for the Group’s efficient operation – underlined Ryszard Kunicki.

Loan agreement – formalities completed

This week, Ciech SA completed formalities relating to the loan agreement entered into with the banks financing the Group’s activities on April 26th, 2010. During the Ordinary General Meeting, Ciech’s shareholders accepted securities under the agreement. The Management Board also initiated creation of a reorganisation team and appointed its member, Andrzej Bąbaś, as a person in charge of coordination of the activities within the framework of the Group’s reorganisation. In accordance with the applicable schedule, the company will negotiate middle-term financing agreement. Currently, pursuant to the short-term financing agreement signed in April 2010, the number of institutions financing the Group’s activities decreased from fifteen to seven.