MUNICH, Germany (June 11, 2010)—Wacker Chemie A.G. has reached an agreement to buy Norwegian Fesil Group's silicon-metal production site in Holla, Norway, for about $79 million.
The deal still needs approvals by Wacker's supervisory board and Fesil's board of directors, along with clearance by antitrust authorities. Closing of the transaction is expected before the end of this year's third quarter.
The acquisition calls for Wacker to take over all of Fesil's production facilities in Holla. The Munich-based chemicals firm said it intends to continue employing the 140 workers at the site.
Wacker CEO Rudolf Staudigl said the purchase is “a key step in securing our long-term supply of silicon metal.” It also will make the company less susceptible to raw material price fluctuations.
Silicon metal is one of Wacker's most important raw materials and is needed for the production of silicones and hyperpure polysilicon. Fesil's production capacity in Holla is about 50,000 metric tons of silicon metal per year, which would account for about one-third of Wacker's current annual needs.