Sif takes Final Investment Decision to Construct the World’s Largest Monopile Foundation Manufacturing Plant
Sif Holding N.V. (“Sif” or the “Company”) today announces its €328 million Final Investment Decision (“FID”) to construct the world’s largest monopile foundation manufacturing plant in Rotterdam, the Netherlands. Construction is expected to start in April 2023;
The upgraded manufacturing plant will significantly increase the total combined capacity of Sif to 500 kilotons a year and upgrade Sif’s capabilities to manufacture the equivalent of 200 XXXL, 11 meter diameter, 2,500 tons reference monopile foundations a year;
Once the expanded manufacturing plant is fully ramped-up, which is expected in the first half of 2025, the Company projects EBITDA of €135 million in 2025 and of at least €160 million per annum from 2026 onwards. This results in a payback period of 3-4 years;
Two launching customers, one of them being Ecowende (a joint venture of Shell and Eneco), together have committed to 348 kilotons of production (booked or in exclusive negotiation) bringing the present total orderbook to 662 kilotons;
A long-term capacity reservation framework agreement with Equinor is in place while a second long-term capacity reservation framework agreement is currently being negotiated, which signifies strong commitment from both our customers and the market;
These launching orders and long-term capacity reservation framework agreements result in strong visibility of future projects and provide significant support to the long-term financial position of the Company;
A solid financing plan for the expansion facility has been committed through a combination of €100 million advanced factory payments from the launching customers, €50 million preferred equity from Equinor, €50 million common equity to be raised through a rights offering, which is fully underwritten by the Company’s largest shareholder Egeria (through Grachtenheer 10 B.V.) (the “Cornerstone Shareholder”) at €11.50 per share, €40 million in operational leases and €81 million of term loans to be provided by Invest-NL and a consortium of commercial banks, with the remainder being funded through cash and cash equivalents;
The Cornerstone Shareholder is fully supportive of the expansion plan and has committed to participate in and underwrite the rights offering and vote in favour of the relevant EGM resolutions;
FID is subject to various customary conditions and to the granting of an irrevocable building permit (‘Omgevingsvergunning voor de activiteit bouwen’). All relevant procedures are on schedule for the start of the construction activities.
