Head start for Sif’s expansion
After the presentation of the detailed plans on Sif’s capital markets day of 17 March last, the USD 360 million expansion of manufacturing facilities had a head start.
Immediately after the EGM of 28 March 2023 to approve the revision of the company’s articles of association, 50,000 cumulative preferred shares were issued to and USD 55 million was paid-up by Equinor Renewables. The cumulative preferred shares have a coupon of 5% with a gradual step-up from 1 July 2025 to 8% as of July 2028. More details of the cumulative preference shares can be found in the presentation that was used for the capital markets day and in the FID press release of 13 February 2023. Both documents can be found on Sif’s website.
In parallel, key contracts with contractors and equipment-suppliers were signed. For civil and building works, Sif contracted DURA Vermeer. Steelworks are contracted to Iemants Eiffage. All parties operate in collaborative contracting and have started preparation works with first activities on site already ongoing. Critical manufacturing process systems like plate preparation equipment, rollers, welding equipment and rollerbeds were ordered and it is expected that approximately USD 165 million of envisaged capex will be spent in 2023 with the remainder due for 2024.
As both the environmental impact permit and the building permit are irrevocable, construction works could start according to schedule on 3 April 2023. This all as defined by the Environmental Law (in Dutch: Wet algemene bepalingen omgevingsrecht (Wabo); vergunning voor de activiteit milieu).