22.08.2016
STEICO SE DE000A0LR936
DGAP-Adhoc: STEICO SE resolves to expand capacity for laminated veneer lumber
STEICO SE / Key word(s): Strategic Company Decision
22.08.2016 17:26
Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Strategic business decision: STEICO SE resolves to expand capacity for
laminated veneer lumber
* Capacity to double to around 160,000 cbm per year
* Total capital expenditure of around EUR 45 million forecast
* Completion scheduled for mid-2018
Feldkirchen (Munich), 2016-08-22. As a result of the continued positive
demand for laminated veneer lumber, STEICO SE (ISIN DE000A0LR9369) has
resolved to increase its capacity in this segment.
Expansion of the production line for laminated veneer lumber
The company plans to double its annual production capacity from currently
around 80,000 cbm to around 160,000 cbm. The existing line for laminated
veneer lumber will be correspondingly modified and expanded in this regard.
The existing line, which was taken into operation at the start of 2016, was
planned and built from the very outset with a view to future expansion. The
fact that this line can already be expanded after just a brief period is
due to the very pleasing high demand for laminated veneer lumber in various
industries.
The planned total capital expenditure is around EUR 45 million and will be
financed by expanding the existing syndicated loan agreement with Deutsche
Bank AG, Commerzbank AG, HSBC Trinkaus & Burkhard AG, Landesbank Baden-
Württemberg (BW-Bank) and Unicredit AG.
The equipment technology will be supplied by the Finnish equipment builder
Raute Corporation, as was the case for the existing production line, which
ensures that the lines interact perfectly. The order for the equipment
technology totals around EUR 17.5 million. This is coupled with investments
in supporting components such as a second biomass boiler from Kablitz and
the expansion to buildings and infrastructure which have been outsourced to
other companies.
Based on the preparatory forecasts for the expansion, the total investment
will be around EUR 15 million lower than the cost of the first production
line, which will boost future profitability.
Construction is to start in the near future. The new production line is
expected to be completed in mid-2018.
Laminated veneer lumber is a highly durable wooden material which combines
the characteristics of wood as a natural product with those of an
industrial precision-made material. Laminated veneer lumber can bear great
loads, however it is characterised by its dimensional stability - it does
not warp like solid wood and it mostly does not swell or shrink. As a
result, laminated veneer lumber can be used in a wide variety of
applications. It is used as a component for STEICO's I-joists, and it is
also an innovative wooden material for state-of-the-art wood construction.
In addition, it is also used in various industrial applications, for
example in the door industry.
By expanding its production capacity, STEICO is laying the foundations for
further high-margin growth and is reinforcing its position as a system
provider for innovative wood construction solutions.
The ad hoc announcement can be downloaded from www.steico.com/ir.
Company profile:
The Open Market listed STEICO group develops, produces and markets
ecological construction products made of renewable raw materials. STEICO is
the global market leader for wood fiber insulation materials.
Contact:
Andreas Schulze
Investor Relations
STEICO SE
Otto-Lilienthal-Ring 30
85622 Feldkirchen
Phone: +49-(0)89-99 15 51-48
Fax: +49-(0)89-99 15 51-98
E-mail: [email protected]
www.steico.com
22.08.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: STEICO SE
Otto-Lilienthal-Ring 30
85622 Feldkirchen
Germany
Phone: +49 - (0)89 - 99 15 51 - 0
Fax: +49 - (0)89 - 99 15 51 - 99
E-mail: [email protected]
Internet: http://www.steico.com
ISIN: DE000A0LR936
WKN: A0LR93
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,
Munich (m:access), Stuttgart, Tradegate Exchange; Open Market
(Entry Standard) in Frankfurt
End of Announcement DGAP News-Service
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