The construction phase of the largest investment in CIECH’s history is coming to its end: a modern evaporated salt plant in Stassfurt

The construction phase of the largest investment in CIECH's history is coming to its end: a modern evaporated salt plant in Stassfurt

06/04/2021

The main construction work on the site of the new salt plant in Stassfurt, Germany, is coming to an end. Despite the coronavirus pandemic, a modern plant was built in just a year¹, which will ultimately produce approx. 450 thousand tonnes of evaporated salt per annum. Parallel to the construction phase which is coming to its end, the commissioning phase begins, i.e. the start-up of individual elements of the production line. Its finalisation is scheduled for the end of the second quarter of this year. Afterwards, the phase of gradual production increase is going to begin, which will involve the attainment of the assumed parameters of the plant's performance - this stage will end, as per current schedule, by the end of September 2021. The investment worth approx. EUR 140 M will make the CIECH Group one of the largest manufacturers of evaporated salt in Europe, and will strengthen the position of the Group as one of the most important Polish private investors abroad.

In the coming weeks, finishing work, training for new employees of the salt plant, confirmation of the parameters of individual lines and the work related to the administrative completion of the investment (use permit) will also be performed. All these activities will have no effect on the course of the commissioning phase.

In spring 2020, the construction work was disrupted by the pandemic and restrictions related to it. The nature of the construction project was international (components for the construction of the factory were ordered, among others, from Italy, Switzerland, Poland, Croatia, and also Germany) and required the presence of an international group of experts. The limitations in the supply chains and the movement of people in connection with the ongoing pandemic proved to be a huge challenge. Difficulties in the work of local and regional offices were also an important element in the context of required permits.

- We are completing an important phase of the largest investment in the Group's history. Despite the continuing pandemic and the related limitations, as well as very unfavourable weather conditions in winter, the plant is ready to implement the commissioning phase and gradually attain the assumed production parameters in the coming months. The investment in Stassfurt is a key element of the Group's strategy, enabling it to diversify its sources of income and increasing competitiveness in international markets - says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

When the works were at their peak, more than 1000 people stayed on the construction site. In December 2020, a crane weighing 750 tons appeared on the site, the task of which was to set up evaporators and dryers, i.e. the salt brine draining installation, which together are the heart of the Stassfurt salt plant.

- We have finished a very intensive 12-month period of hard work of the CIECH's team in Germany and Poland. With the dedication of our employees in both countries, very good organisation of the entire process, smooth cooperation with suppliers and contractors in extremely demanding conditions, we are now ready to start the next phase of the Group's flagship investment - says Mirosław Skowron, Member of the Management Board of CIECH S.A., responsible, among others, for the Stassfurt investment.

In the coming weeks, further elements of the production line will be gradually commissioned - first, a test process of brine purification and evaporation will begin, enabling the production of the so-called wet salt. After the calibration and optimisation of its production process, we will be able to begin with the production of dry salt, as well as manufacturing and packaging of salt tablets, constituting, as per assumed goals, more than 50% of the total product portfolio of the new salt works. There are plans to commence sales on a larger scale, among others, due to the commissioning phase and restrictions in Germany arising from the continuing pandemic, for the third quarter of 2021.

The Stassfurt salt plant will be one of the most modern facilities of this type in Europe. Evaporated salt will be produced there with the use of a different technology than in the CIECH's factory in Poland. Instead of steam heated evaporators (the MEE technology), a fully automated production line based on the MVR technology (evaporation of water by supplying compressed steam) was applied here. The technology based on the physical Boyle's law ensures significant savings and increases the efficiency of salt production.

The production process applied in Stassfurt is also a more environmentally friendly, low-emission source of electricity, originating from an efficient gas-fired CHP plant, and effective management of thermal energy in the process, as confirmed by the German ENEV certificate. In addition, the salt plant has been equipped with an optimal system for managing production waste, which is discharged to an underground storage site.

The new CIECH factory will also be provided with a modern, fully automated high storage warehouse.

The advantage of the German situation of the new salt production plant is the availability of its own sources of raw materials (brine), a low-emission and effective source of energy and a very convenient location, enabling expansion on attractive Western European markets. After attaining the target value of annual production, the CIECH Group will join the largest European evaporated salt manufacturers with an established position in Central Europe, Scandinavia, and with the prospect of expansion to Western European markets.

Kontakt dla mediów:

Mirosław Kuk, Rzecznik Prasowy Grupy CIECH

[e-mail], tel. [phone].

CIECH is an international developing chemical group with a strong position on global markets. It is the second largest manufacturer of sodium carbonate and sodium bicarbonate in the European Union, the largest manufacturer of evaporated salt in Poland, the largest supplier of sodium silicates in Europe, the largest Polish manufacturer of plant protection products, and a leading producer of polyurethane foams in Poland. Its factories are located in Poland, Germany and Romania, and it employs over 3,000 people throughout the EU.

Since 2005, CIECH S.A. has been listed on the Warsaw Stock Exchange, and since 2016, simultaneously, on one of the largest stock exchanges in Europe - Börse Frankfurt. The development of the Group is supported by its strategic investor - Kulczyk Investments.

As one of the largest Polish exporters, CIECH ships its goods to almost each continent. They are used to manufacture products necessary in the everyday life of millions of people around the world. That is why the Group is a crucial element of numerous sectors of the economy - construction, automotive, agriculture, chemical, food and pharmaceutical industries.

CIECH combines a modern business approach and care for sustainable development. Since 2020, it has been a member of the United Nations Global Compact - the world's largest initiative that brings together socially, environmentally and economically responsible businesses.

¹ In spring 2020, CIECH Salz signed an agreement with the general contractor - the Adamietz company.

² A certificate confirming energy efficiency of a facility, based on the energy saving regulation introduced by the German Government.