Nasdaq Copenhagen
Nikolaj Plads 6
1067 København K
Frederikssund, 23 June 2016
ANNOUNCEMENT NO. 21/16
NEW AGREEMENT SIGNED WITH THE LARGEST SUPPLIER OF RAW MATERIALS, SECURING CONSIDERABLY REDUCED RAW MATERIALS PRICES AND FLEXITILITY IN TERMS OF VOLUMES
As part of the new strategy, the company has negotiated with its two largest suppliers of raw materials to obtain substantially lower raw materials prices relative to 2015 as well as adjustments of purchasing commitments.
The first agreement was made earlier this year, and the company has today signed an agreement with the other large supplier of raw materials.
The agreement will secure considerably reduced purchase prices for raw materials and flexibility in terms of volumes. The agreement is an important step for the company in pursuing its new strategy for 2016–2020.
Under the agreement, the company will be released from all former agreements between the parties, including the significant purchase obligations accepted when the former agreement was entered into in 2010. The company has paid a lump sum of USD 5m to be released from the existing agreements. This amount is included in the expected non-recurring costs in connection with the strategic initiatives. The payment will be part of the business acquired by GlobalWafers.
Any queries regarding this announcement may be addressed to the company's CEO, Kalle Hvidt Nielsen, through Susanne Hesselkjær, Executive Secretary, tel. +45 2926 6752.
Cemat A/S (formerly Topsil Semiconductor Materials A/S)
Jens Borelli-Kjær Kalle Hvidt Nielsen
Chairman CEO
This announcement has been prepared in a Danish-language and an English-language version. In case of doubt, the Danish version will prevail.
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