Steico SE

Regulatory Filings • Oct 1, 2007

News Details

Corporate | 1 October 2007 08:31

STEICO Aktiengesellschaft: STEICO invests in future ‘hemp’ market

STEICO Aktiengesellschaft / Miscellaneous/Miscellaneous

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STEICO invests in future 'hemp' market

• Erection of a manufacturing facility for hemp shive boards
• Total investment amounting to €5million
• Complementary product to the ecological insulation and construction
systems

Feldkirchen, 1st October 2007 – Listed in Entry Standard of Frankfurt Stock
Exchange, STEICO AG has complemented its product range of
environmentally-friendly construction and insulation systems by an
essential element. The European market leader in the wood fibre -insulation
sector has invested in the future market for hemp materials. The company
has acquired a second-hand manufacturing facility for hemp shive boards.
The deal was closed on 28 September 2007.

Commissioning date in the first half of 2008

The purchase price amounts to €1.075m. The STEICO corporate group estimates
the overall capital investment of about €5 million, including dismounting
and mounting of machinery, as well as spacial facility extension. The
acquired facilities, once dismounted, will be transported and re-erected at
the Polish production site in Czarnków. The commissioning date is scheduled
for the first half of 2008.
STEICO AG has bought the facility as liquidation asset of Stropoly
Verwaltungsgesellschaft mbH & Co. Produktions KG, Güstrow.
Gerhard Brinkmann, in the capacity of asset liquidator, has been the
seller. Tangible fixed assets, intangible assets and inventories have been
the objects of purchase. The STEICO group has not purchased the remaining
assets and liabilities of Stropoly.

Unique facilities of the sort worldwide

Shives constitute the wooden core of the hemp stalk. Falling off in great
quantity, they are the by-product of the STEICO insulation materials
manufacturing process. The new facilities will enable STEICO, the
specialist for insulation made from renewable raw materials, to manufacture
light-weight and high-resistance boards from further processed shives.

The boards can, among others, be applied in door inner plies, as core
boards for kitchen coutertops and worktops, as well as brace boards in
timber structures. The manufacturing facilities in question are unique
worldwide. They are geared to production of differing board generations in
various formats, with gross weight of 200 to 800 kg/m3 and thickness up to
over 100mm.

New markets with excellent opportunities

The brace shive boards essentially complement STEICO`s
environmentally-friendly construction and insulation system. With the new
facilities, STEICOs value-added depth has increased and the product
portfolio extension has strengthened the companys leading position as
system provider for ecological construction materials. The established
distribution network will be used to deliver the new product to the
existing customers. This, together with expected demand from additional
door and worktops markets, will offer STEICO-Group excellent chance to
effectively boost the corporate turnover and revenue figures.

Company profile

The STEICO Group develops, produces and sells ecological construction
products
made of renewable natural resources. STEICO AG leads the European market
for wood fibre
insulation materials with a market share of more than 35%. The company also
enjoys top rankings for its highly effective cost structure as well as its
Germany-based Research
and Development activities. With the launch of new STEICO products 'Hemp
insulation materials' and 'I-joists' as construction elements for
residential
construction, the company has grown to become a system provider for
ecological
construction products. The production of natural fibre boards (NFB) as
components
for the I-joists rounds off STEICO‘s vertical integration, unique
for the industry. The Munich-based company‘s products are successfully
used in house construction applications for floors, walls, ceilings and
roofs.

The corporate group's goal is to pursue, through clear and transparent
strategy, the recent growth reflected in double-digit turnover and profit
figures. Existing and new products, also those targeting new customers,
constitute the focus of corporate strategic planning. By means of the IPO
proceeds of June 2007 the company is in a good position to both strengthen
the core group activities and accelerate the growth process.

Contact:
Andreas Schulze
STEICO Aktiengesellschaft
Hans-Riedl-Strasse 21
85622 Feldkirchen
Fon: +49-(0)89-99 15 51-48
Fax: +49-(0)89-99 15 51-97
E-Mail: schulze@steico.com
www.steico.com

01.10.2007 Financial News transmitted by DGAP

Language: English
Issuer: STEICO Aktiengesellschaft
Hans-Riedl-Str. 21
85622 Feldkirchen
Deutschland
Phone: +49 - (0)89 - 99 15 51 - 0
Fax: +49 - (0)89 - 99 15 51 - 99
E-mail: info@steico.com
Internet: http://www.steico.com
ISIN: DE000A0LR936
WKN: A0LR93
Listed: Freiverkehr in Berlin, Düsseldorf, München; Entry Standard in
Frankfurt

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