TSX : TIM
February 22, 2008 14:04 ET
Timminco Announces Expansion of Production Capacity for Solar Grade Silicon
TORONTO, ONTARIO--(Marketwire - Feb. 22, 2008) - Timminco Limited (TSX:TIM) today announced that its Board of Directors has approved capacity expansion plans for the production of solar grade silicon at its wholly owned subsidiary, Becancour Silicon Inc. ("BSI"), at its location in Becancour, Quebec. The expansion is expected to raise the total annual production capacity of its solar grade silicon facilities to 14,400 metric tons from 3,600 metric tons. The expansion is expected to have a capital cost of approximately $65 million and will be completed by mid 2009, on a schedule that will enable BSI to meet all current customer commitments.
The expansion will include a new production facility equal in capacity to the manufacturing plant currently being commissioned. In addition, new production lines will be installed in BSI's existing silicon metal facility in Becancour to process first pass material. The balance of the project will comprise the construction of new buildings for packaging and shipping, maintenance and employee services. Funding of the project will be from current liquidity, customer deposits under long term supply agreements and expected cash flow from operations and will be expended throughout 2008 and the first half of 2009.
Existing long term customer supply contracts commit BSI for delivery of up to 6,000 metric tons per year beginning in 2009, and BSI has a pipeline of prospective customers who have expressed interest in entering into long term purchase commitments with BSI for solar grade silicon.
"The demand from customers and prospects for our solar grade silicon has confirmed the business case for expansion of our production facilities," said Mr. Rene Boisvert, President and CEO of BSI. "With the commencement of production in our new facility we can now direct our project team to replicate that facility to strengthen Timminco's position as a leader in production of solar grade silicon."
Timminco Limited (TSX:TIM) is a leader in the production and marketing of lightweight metals, specializing in solar grade silicon for the rapidly growing solar photovoltaic energy industry. Using its proprietary technology, Timminco processes metallurgical grade silicon into low cost solar grade silicon for use in the manufacture of solar cells. Timminco has expanded its solar grade silicon capacity to 3,600 mt per year, and plans to further increase capacity to meet anticipated future demand. Timminco also produces alloy magnesium, silicon metal and specialty ferrosilicon, calcium and strontium alloys for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries. For more information, visit www.timminco.com.
CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation, concerning Timminco's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". In this news release, such information includes statements regarding the scale of solar grade production capacity, the amount of capital that may be expended on expansion, the timing of completion of expansion and the source and sufficiency of funds required to pay for the expansion. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Timminco operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Timminco cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Timminco's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to, expansion of the solar grade silicon business generally, delays or cost overruns in the construction of new manufacturing facilities and installing and commissioning new equipment, commitments under existing and prospective long-term contracts for solar grade silicon, maintaining and further improving the purity of solar grade silicon, and protection of intellectual property rights. These and other factors are discussed in greater detail in Timminco's most recent Management's Discussion and Analysis. Although Timminco has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this news release is made as of the date of this news release and Timminco disclaims any intention or obligation to update or revise such information, except as required by applicable law.