Impairments, and Structural and Personnel Measures
To take account of Siltronic’s new site strategy and the expected semiconductor trend, WACKER has recognized impairments on fixed assets of €139.2 million. At WACKER SILICONES, we have additionally recognized impairments on fixed assets totaling €36.8 million, due to planned site closures and weaker market prices. For personnel-related measures, WACKER established provisions of €20.5 million. An additional €39.6 million were set aside for phased early retirement and for working-life accounts.
WACKER increased the addition to pension provisions by €47.9 million to take account of the higher life expectancy of the Group’s pension-fund beneficiaries.
Effective September 30, 2009, WACKER exited the solar-wafer business. Our 50% share in the WACKER SCHOTT Solar (WSS) joint venture was transferred to former partner SCHOTT Solar AG. The reason for this move was our decision to focus our solar activities exclusively on producing hyperpure polycrystalline silicon. As a result, income before taxes was impacted by a non-recurring charge of €51.9 million. Net cash flow fell by €64.0 million due to our withdrawal.
WACKER Exits Solar-Wafer Business
WACKER kept to its investment plans in 2009. Construction work on the new polysilicon production facility (“Expansion Stage 9”) at Nünchritz progressed on schedule. With a nominal capacity of 10,000 metric tons, “Expansion Stage 8” in Burghausen is currently at the ramp-up phase. We brought the expanded cyclodextrin production facility in Eddyville (USA) on stream, as well as a new integrated plant for dispersions and dispersible polymer powders in Nanjing (China).