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STEICO SE: Investment in production facilities for wood fibre insulation materials at Gromadka site

DGAP-News: STEICO SE / Key word(s): Miscellaneous STEICO SE: Investment in production facilities for wood fibre insulation materials at Gromadka site 09.03.2021 / 20:50 The issuer is solely responsible for the content of this announcement. * New production capacity created for annual output of more than 1.5 million cbm

* Additional increases to capacity possible at this site

Feldkirchen (Munich), 9 March 2021 - Today's meeting of the Board of Management of STEICO Group (ISIN DE000A0LR936) resolved to create new production capacity at the recently acquired facility at Gromadka (Poland).

An insulation materials plant with three production lines will be set up. Two lines will be built for flexible wood fibre insulation mats, with a combined total annual capacity of over 1 million cbm. Another line with an annual capacity of around 500,000 cbm will produce stable wood fibre insulation boards using the dry process.

According to current forecasts, the total investment volume will amount to around € 75 million. Construction is scheduled to start in mid-2021. The group intends to take production live at the end of 2022. The possibility of further expanding capacity in future is already included in the current project design, so that a future-oriented further expansion of the site is possible.

The Gromadka facility is located about 70 km east of Görlitz, conveniently situated directly on the Polish A4 motorway, and is part of a former airport that is currently being converted into an industrial estate. The space was acquired in November 2020.

STEICO is responding to the rapidly increasing demand for wood fibre insulating materials by continuously expanding its production capacities, and this trend is also enjoying dynamic growth in the first quarter of 2021.

Current capacity enhancement projects include:

- Increase in capacity for flexible wood-fibre insulation mats by 45% by going live with a production line in France (Casteljaloux site) and conversion of a production line in Poland (start of regular operations March 2021).

- Increase in capacity for stable wood-fibre insulation boards using the wet method by 15% by optimizing production lines (project already completed at the start of 2021).