OKMETIC OYJ STOCK EXCHANGE RELEASE 27 APRIL 2011 AT 8.00 A.M.
OKMETIC INCREASES SOI WAFER PRODUCTION CAPACITY IN VANTAA AND SPECIFIES LONG-TERM FINANCIAL OBJECTIVES
Okmetic's board of directors has approved plans to increase the group's silicon-on-insulator (SOI) wafer production capacity by extending the Vantaa plant. The around 30 million euro investment includes the plant extension and different kinds of production equipment. This investment, together with the on-going SOI equipment investments, more than triples the Vantaa plant's current SOI wafer production capacity. Along with the growing production amounts, new equipment and process development, improved productivity is being aimed at. At the same time, improvement of SOI wafers' performance continues in order to ensure customers' competitiveness.
The investment will be carried out mainly in 2011-2013. The building of the Vantaa plant extension will start in autumn 2011. The surface area of the extension is 2,420 m2, approximately a quarter of which is for clean room facilities. The extension is due to be complete in the end of 2012, after which it will be taken into production use in stages, following the growth of the market demand.
The aim is that the investment will be covered mainly with cash flow from operations, and no need for significant loan financing is foreseeable.
SOI wafers are used for demanding MEMS sensors and HV applications whose markets have increased year by year. It is estimated that the markets continue to grow as automotive electronics, consumer electronics as well as industrial process control increase. Sensor applications increase especially in consumer products such as smart phones, cameras, game consoles and in other portable devices.
One of Okmetic's core competencies is sensor wafer production, which is based on high technology and special expertise. The company has invested in the development of SOI wafers' features and production for years. This newly made investment decision supports Okmetic's long-term strategy and growth objectives, strengthens company's market leadership as the supplier of demanding sensor wafers and enables increase of market share in SOI wafers.
THE COMPANY SPECIFIES ITS LONG-TERM FINANCIAL OBJECTIVES
At the same time, the board of directors approved the company's revised long-term financial objectives. The company's aim is that the organic net sales grow a minimum of 10 percent annually and that the operating profit is over 10 percent of the net sales. The just published investment supports the specified long-term objectives.
The company's previous long-term financial objectives stated that the organic net sales grow a minimum of 6 percent annually and that the operating profit is over 10 percent of the net sales. At the same the company discarded other specifically defined long-term financial objectives such as a 50 percent equity ratio and consistent annual dividend distribution.
For further information, please contact:
Kai Seikku, President, Okmetic Oyj,
Tel. +358 400 200 288, e-mail: firstname.lastname@example.org
NASDAQ OMX Helsinki Ltd
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Okmetic is a technology company which supplies tailor-made silicon wafers for sensor and semiconductor industries and sells its technological expertise to the solar cell industry. Okmetic provides its customers with solutions that boost their competitiveness and profitability.
Okmetic's silicon wafers are part of a further processing chain that produces end products that improve human interaction and quality of life. The company's products are based on high-tech expertise that generates added value for customers, innovative product development and an extremely efficient production process.
Okmetic has a worldwide clientele and sales network, production plants in Finland and in the United States as well as license-based production in Japan and in China.
Ocmetic's shares are listed on the NASDAQ OMX Helsinki Ltd under the trading symbol OKM1V. Additional information can be found on the company's website: www.okmetic.com.
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Source: Okmetic Oyj via Thomson Reuters ONE