WACKER builds new polysilicon production facility in the United States

The annual production capacity of the integrated production base in Tennessee, USA will reach 15,000 tons with an investment of approximately 1.1 billion euros. It will create approximately 650 new work locations and the planned production facility will be completed by the end of 2013.

President RUDOLFSTAUDIGL said: "This substantial investment has consolidated our position as a world leader in the production of ultrapure polysilicon for the photovoltaic industry."

Munich, Germany/Cleveland, Tennessee, December 9, 2010 – Wacker Chemie AG will build a fully integrated new polysilicon production facility near the city of Cleveland, Tennessee. The Munich-based chemical group announced this decision today. The annual production capacity of the integrated production equipment is expected to be 15,000 tons, which will be built on WACKER's real estate purchased at the beginning of last year. WACKER will build polysilicon in Cleveland to produce a closed material recycling facility for the entire value-added chain. This involves the recycling of production raw materials from trichlorosilane to ultrapure polysilicon, as well as the production of recycled by-products and additives. The new production facility is expected to be completed by the end of 2013. The Group’s investment in preparation for this production capacity is about 1.1 billion euros. It is expected to create about 650 new work locations in Cleveland.

In this investment decision, WACKER considered the group's forecast that the world's demand for ultrapure polysilicon will continue to grow. WACKER predicts that the demand for polysilicon in the solar power industry will continue to grow at a double-digit rate each year in the next few years. According to WACKER, the demand for polysilicon in the electronics industry will continue to increase.

"This substantial investment has strengthened our position as a world leader in the production of ultrapure polysilicon for the photovoltaic industry," stressed Rudolf Staudigl, President and CEO of Wacker Chemie AG. “We are convinced that in the coming years, the demand for high-quality, high-efficiency polysilicon for solar cells will continue to increase. In addition, this increased production capacity outside the euro zone allows us to increase the resistance to exchange rate fluctuations. ability."

The decisive prerequisite for choosing this production base is on the one hand good infrastructure and energy prices. Local direct supply of chlorine and very convenient traffic conditions are also attractive factors for the production base in Cleveland. On the other hand, WACKER has received strong support from the local government departments and business partners in Tennessee. Funding projects related to the construction of production bases mainly include the construction of necessary transportation facilities and the guarantee of the provision of hydropower. Both are key prerequisites for the production of high-purity polysilicon. In addition, the electricity bill in Tennessee is significantly cheaper than the German production base.

WACKER's total production volume reached 30,000 tons in 2010. Today it is the world's second largest manufacturer of ultra-pure polysilicon. Coupled with the production of polysilicon units currently being built at Nünchritz and the new production base in Tennessee, WACKER Group has consolidated its world-leading position in producing high-quality semiconductors and photovoltaic wafers.