SiC Processing: Capital injection for Asian expansion

"With our own initial corporate bond, we want to finance our growth above all in China and India," managing director Thomas Heckmann told pv magazine. Furthermore, with the additional injection of capital, the company plans to develop its research and development activities at its German business location in Bautzen. According to Heckmann, the company currently commands a 40 percent share of the global market for slurry recycling from wafer production.

Corporate bond

Subscription of the SiC-Processing-TechBond (ISIN:DE000A1H3HQ1) starts today, February 16, on the Stuttgart stock exchange and directly through the Hirschau company. The fixed interest amounts to 7.125 percent over a term of five years. The minimum investment for the €100 million technology bond is €1,000; the security type is a bearer bond. Creditreform rates the corporate bond with BBB+ as an investment grade.

The technology bond can be subscribed by both institutional and private investors. "We anticipate a 50 percent share of private investors," says Heckmann. He goes on to say that, in principle, the SiC Processing technology bond is also open to foreign investors, except those from the U.S., Canada, Australia and Japan.

Capacity expansion

Sales last year at SiC Processing GmbH increased by 54 percent to a total of €160 million with 700 staff. The company’s EBITDA rose by 50 percent in the same period to €51 million. At present, the company has production locations in Germany, China, the U.S., Norway and Italy, with an annual conditioning capacity of 215,000 tons of slurry.

With its principal place of business in Germany’s Upper Palatinate, the company’s customers include, according to Heckmann, global players such as Yingli Solar, Trina Solar, the Suntech Group as well as REC. By the end of 2012, production capacity is set to be expanded to 400,000 tons, with growth particularly in China and India. "We also see India as a very interesting market over the medium term," emphasized Heckmann. By the end of 2012, plans are to develop a decentralized plant there for slurry recycling with an annual capacity of 30,000 tons.