EANS-News: WACKER optimizes its global production network

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Munich (euro adhoc) - July 8, 2009 - Wacker Chemie AG intends to introduce a new
site strategy to increase flexibility and further optimize the integrated
production network of its Siltronic semiconductor subsidiary. Silicon wafer
production is to be concentrated at lead sites according to individual
diameters. This was decided today by the relevant WACKER Group committees.

Currently, Siltronic produces the same wafer diameters at several sites
worldwide. Concentrating on individual diameters at lead sites will increase
future plant capacity utilization and, in turn, improve Siltronic´s cost
structure, as well as pool individual-diameter production know-how at lead
sites. This approach involves, for example, discontinuing 150 mm wafer
production at Freiberg and transferring these production volumes to Burghausen.
In the 300 mm wafer segment, the Burghausen site is expected to become the focus
of R&D-related tasks, with production being pooled at Freiberg and Singapore.
Singapore will become the lead site for 200 mm wafers, too. The new site
strategy along with the expected development of the semiconductor market results
in impairments on fixed assets totaling some EUR120 million, which will be
accounted for in the financial statements for the first half of 2009.

In addition to these realignments at Siltronic, WACKER will also implement
structural improvements at WACKER SILICONES targeting at cost reductions, higher
flexibility and improved plant capacity utilization. Compared to March 31, 2009,
all these measures are expected to cut nearly 800 positions at Siltronic and
WACKER SILICONES by the end of 2010. WACKER has already found a solution for 450
of the employees affected. To implement the remaining job cuts, WACKER will book
provisions totaling about EUR15 million in Q2 2009. Since mid-2008, Siltronic
has already reduced its workforce by some 550 employees, including external
temporary workers.

"Our goal is to implement the planned job cuts without layoffs - and I see a
very good chance we will succeed," says WACKER´s Executive Board Member and
Personnel Director Dr. Wilhelm Sittenthaler. "In the next two years, we will
have additional personnel needs at the Group, especially due to the extension of
our polysilicon business. And we will, of course, primarily consider our
existing staff for these jobs," stressed Sittenthaler. As a result, he said he
remained confident that the necessary job cuts at the semiconductor and silicone
businesses could be implemented in a socially-acceptable manner via natural
fluctuation, semi-retirement and severance packages.

In addition, a control and profit transfer agreement will be executed between
Siltronic AG and Wacker-Chemie Dritte Venture GmbH, a wholly-owned subsidiary of
Wacker Chemie AG. Since such an agreement already exists between Wacker-Chemie
Dritte Venture GmbH and Wacker Chemie AG, profits and losses at Siltronic can
now be netted with Wacker Chemie AG´s resulting net income. WACKER expects this
agreement to have a positive effect on 2009´s after-tax income ranging in the
higher double-digit euro millions.

The Group views the agreed measures as an important step to counter the impact
of the economic crisis on the company and further ensure WACKER´s
competitiveness. "WACKER´s business in Q2 2009 was in line with our
expectations," said CFO Dr. Joachim Rauhut. "Sales picked up compared to Q1,
though price pressure has grown in all segments. Q2 Group EBITDA will be better
compared to the first three months of fiscal 2009. For our semiconductor
business, we again expect an operational loss in Q2, though it should be
somewhat lower than in Q1. The earnings situation at WACKER POLYSILICON
continues to remain attractive."

Wacker Chemie AG will publish its Q2 report on July 30, 2009.

This press release contains forward-looking statements based on assumptions and
estimates of WACKER´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. WACKER does not
plan to update the forward-looking statements, nor does it assume the obligation
to do so.

Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: [email protected]

end of announcement euro adhoc
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emitter: Wacker Chemie AG
Hanns-Seidel-Platz 4
D-81737 München
phone: +49 (0) 89 6279 01
FAX: +49 (0) 89 6279 1770
mail: [email protected]
WWW: http://www.wacker.com
sector: Chemicals
ISIN: DE000WCH8881
indexes: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX, Prime
All Share
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English

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