Timminco Limited
TSX : TIM

Timminco Limited

May 28, 2009 08:41 ET

Timminco Reaches New Labour Contract With Employees at Becancour Facilities

TORONTO, ONTARIO--(Marketwire - May 28, 2009) - Timminco Limited ("Timminco" or the "Company")(TSX:TIM) announced that the hourly workforce at its Becancour, Quebec facilities have ratified and approved the terms of a new collective bargaining agreement, which will apply for a five-year term ending in April 2013. Over 93% of the unionized employees, who are represented by the Communications, Energy and Paperworkers Union of Canada, Local 184, voted in favour of the new terms.

Under the new agreement, wages will not increase from existing levels, which have been in effect since the expiry of the prior labour contract in April 2008, until May 2010. Wage increases of 2.4%, 2.6% and 2.8% will take effect annually in May 2010, May 2011, and May 2012, respectively. The Company will also implement new work schedules to enhance the efficiency of operations at the Becancour facility.

"We are very pleased that our employees have shown such strong support for the new agreement," said Mr. Rene Boisvert, President and CEO of Becancour Silicon Inc., Timminco's wholly-owned subsidiary. "We have spent many months in negotiations with the union representatives, and thank them for their efforts in bringing us to an amicable agreement on the new contract. It provides long-term stability in the workforce, which positions the company well for the future when we see a recovery in the demand for silicon metal and solar grade silicon."

Timminco has 375 employees at its Becancour facilities, of which 275 are unionized. As previously announced, the Company has implemented temporary workforce reductions at these facilities as a result of the curtailment of production of silicon metal and the reduction in the production levels of solar grade silicon under its cost containment initiative. To date, 172 unionized employees have been given temporary lay-off notices to bring employment levels in line with current production levels. The extent and duration of such workforce reductions are uncertain.

About Timminco

Timminco produces solar grade silicon for the solar photovoltaic energy industry. Using its proprietary, patent pending technology, Timminco purifies silicon metal into solar grade silicon (also known as upgraded metallurgical silicon) for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.

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 new collective bargaining agreement for employees at the Becancour facilities and long-term stability in the workforce. 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: deteriorating global economic conditions; future growth plans and strategic objectives; liquidity risks; limitations under existing credit facilities; long-term contracts for supplying solar grade silicon; solar grade silicon production cost targets; selling prices of solar grade silicon and silicon metal; achieving and maintaining the purity of solar grade silicon; production capacity expansion at the Becancour facilities; pricing and availability of raw materials for the silicon business; customer capabilities in producing ingots; limited history with the solar grade silicon business; dependence upon power supply for silicon metal production; protection of intellectual property rights; government and economic incentives; closure of the magnesium facilities and the completion of related proposed transactions; cost and availability of magnesium metal; dependence upon key customers of magnesium extruded and fabricated products; credit risk exposure; customer concentration; equipment failures; labour disputes; foreign currency exchange; dependence upon key executives and employees; completion and integration of potential acquisitions, partnerships or joint ventures; risks with foreign operations and suppliers; environmental, health and safety laws and liabilities; transportation disruptions; conflicts of interest; interest rates; intellectual property infringement claims; new regulatory requirements; changes in tax laws; and climate change. These factors are discussed in greater detail in Timminco's Annual Information Form for the year ended December 31, 2008, and Timminco's most recent Management's Discussion and Analysis, each of which is available via the SEDAR website at www.sedar.com. 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.


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