December 19, 2007 15:35 ET
TORONTO, ONTARIO--(Marketwire - Dec. 19, 2007) - Timminco Limited ("Timminco")(TSX:TIM) today announced that its wholly-owned subsidiary, Becancour Silicon Inc. ("BSI"), has entered into an agreement to sell solar grade silicon to a solar cell manufacturer. The agreement provides for shipments of approximately 4,400 metric tons over a term of five years.
This agreement represents BSI's fourth long-term commercial contract for the sale of high purity silicon. The total annual production volume under these four contracts is expected to be approximately 6,000 metric tons beginning in 2009. This volume will require production capacity expansion beyond the 3,600 metric ton production facility that BSI currently is constructing in Becancour, Quebec. That facility has commenced production on the first of three production lines.
"This contract represents an important step in increasing our customer base. Our ability to attract solar cell manufacturers as customers reflects the quality of the solar grade silicon material that we have been able to produce in our initial purification facility. This fourth contract strengthens the business case for significant additional expansion of our production capacity to meet anticipated volume requirements starting in 2009. Our plans for this additional capacity expansion will be announced separately." said Mr. Rene Boisvert, President and CEO of BSI.
This news release contains forward-looking statements concerning Timminco's business and operations. Timminco cautions that, by their nature, forward-looking statements involve risk and uncertainty and that Timminco's actual results could differ materially from those expressed or implied in such statements. Such statements include comments regarding production volumes and additional production capacity expansion at BSI.
There are financial and operational risks inherent in all of Timminco's businesses, which include, but are not limited to: commodity prices, currency exchange, interest rates, capital, credit, regulatory, political, operational and environmental risks. In Timminco's solar grade silicon business, there are additional risks associated with the expansion of this business and production capacity, increasing product purity, the long-term commercial contracts, and protection of intellectual property. Timminco takes specific measures to manage anticipated risks, and any forward-looking statements in this news release were based on the assumption of no significant changes or trends with respect to such risk factors. However, there can be no assurance that future developments affecting Timminco or its businesses will be those anticipated by Timminco. Reference should be made to the most recent Management's Discussion and Analysis for a description of the major risk factors. Timminco disclaims any duty to update forward-looking statements other than through relevant future Management's Discussions and Analyses.
Timminco is a leader in the production of silicon metal for the electronics, chemical and aluminum industries. Timminco, through BSI, has also commenced production of solar grade silicon metal. Other businesses include the production and marketing of magnesium, calcium and strontium alloys and magnesium extruded and fabricated products. Timminco's products are used in a broad range of specialized industrial applications and industries such as electronics, solar energy, chemical, engineered extruded products, pharmaceutical, automotive and metallurgical. Timminco's common shares are traded on the Toronto Stock Exchange under the symbol TIM.
Timminco LimitedRobert J. DietrichExecutive Vice President - Finance and CFO(416) 364-5171(416) 364-3451 (FAX)Email: firstname.lastname@example.orgBecancour Silicon Inc.Rene BoisvertPresident and CEO(819) 294-6000(819) 294-9001 (FAX)Email: email@example.com
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