Siltronic adapts capacity for 150 millimeter silicon wafers to market demand
Siltronic, the semiconductor subsidiary of Wacker Chemie AG, intends to streamline its production capacity for 150 millimeter silicon wafers. For this reason, Siltronic is planning to stop producing this wafer diameter at Portland (Oregon, USA) in the fall of 2012. The Munich-based chemical Group announced this today. The decision means that Portland’s current workforce of some 750 will be reduced by about 350. The affected personnel will receive severance packages. Siltronic will continue to produce 200 mm wafers at Portland.
At Burghausen (Germany), Siltronic is also adapting its 150 millimeter wafer line to the permanently low level of demand. Due to this process and other steps to increase productivity, there will be about 150 job cuts at the site. Implementation of the measures is scheduled for this year. The job cuts are to be made without involuntary layoffs, primarily by offering those affected jobs at the Group’s other units in Burghausen. The exact details of the plan are currently being discussed with employee representatives.
“Consolidating 150 millimeter wafer production at Burghausen, while reducing personnel capacity there at the same time, enhances plant utilization at this site, improving our fixed-cost coverage,” explained Christoph von Plotho, Siltronic’s president and CEO. As a result, Siltronic anticipates an overall earnings improvement of about €30 million per year, starting 2013. These measures are expected to cause non-recurring expenses of about €15 million, which will be reflected in EBITDA (earnings before interest, taxes, depreciation and amortization).
By consolidating its 150 millimeter capacities, Siltronic is building on the structural improvements already made and adapting output to market demand. In doing so, Siltronic is pursuing its lead-site strategy, adopted three years ago, to concentrate silicon-wafer production at single sites according to diameter.
This press release contains forward-looking statements based on assumptions and estimates of Siltronic’s Executive Board. Although we assume the expectations in these forward-looking statements are realistic, we cannot guarantee they will prove to be correct. The assumptions may harbor risks and uncertainties that may cause the actual figures to differ considerably from the forward-looking statements. Factors that may cause such discrepancies include, among other things, changes in the economic and business environment, variations in exchange and interest rates, the introduction of competing products, lack of acceptance for new products or services, and changes in corporate strategy. Siltronic does not plan to update the forward looking statements, nor does it assume the obligation to do so.
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