AMG Subsidiary Announces Solar Grade Silicon Supply Agreement with Q-Cells AG
Amsterdam, 27 March 2008 — AMG Advanced Metallurgical Group N.V. (EURONEXT AMSTERDAM: AMG) today announced that its 50.5% owned subsidiary Timminco Limited (TSX: TIM), through its wholly-owned subsidiary, Bécancour Silicon Inc. (“BSI”) has announced that it has entered into an agreement to supply solar grade silicon to Q-Cells AG. In its press release Timminco stated:
Under the terms of the agreement, BSI will supply Q-Cells with contractually fixed supplies of 410 metric tons (mt) in 2008 and 3,000 mt in 2009 at fixed prices. The deliveries start immediately. Until the end of July 2008 the partners will negotiate a further contract on the delivery of up to 6,000 mt per year in the years 2010 to 2013. The price for these possible further supplies will be negotiated contingent upon market conditions. With this contract Q-Cells will become BSI’s largest customer for solar grade silicon in 2009.
This agreement represents BSI’s fifth long-term commercial contract for the sale of high purity silicon. In the event that Q-Cells and BSI agree to extend the contract to 6,000 mt per year for the period 2010 to 2013, this contract would raise the committed deliveries of BSI’s solar grade silicon business to 12,000 mt per year beginning in 2010. On February 22, 2008 Timminco announced the expansion of BSI’s solar grade silicon capacity to 14,400 mt per year, with the incremental capacity fully on stream by the end of the second quarter of 2009.
“BSI has developed a proprietary process which enables it to produce solar grade silicon by purifying metallurgical silicon. Q-Cells has tested unblended material from BSI extensively and has obtained very good results in cell production”, said Mr. Anton Milner, CEO of Q-Cells.
“This contract represents a giant step for our solar grade silicon business. Q-Cells is a leader in the photovoltaic industry and their endorsement of our material through this supply agreement is further evidence of the paradigm shift we are creating in the solar grade silicon market.” said Mr. René Boisvert, President and CEO of BSI.
AMG, incorporated in the Netherlands, is a global leader in the production of highly engineered specialty metal products and advanced vacuum furnace systems. AMG serves growing industries worldwide with its unique combination of metallurgical engineering expertise and production know-how. AMG is a market leader in many of its products and systems, which are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG has two operating divisions of businesses, Advanced Materials and Engineering Systems, and owns a majority interest in publicly-listed Timminco Limited (TSX: “TIM”).
The Advanced Materials Division develops and produces niche specialty metals and complex metals products, many of which are used in demanding, safety-critical, high-stress environments. AMG is one of a limited number of significant producers globally of niche specialty metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys and additives, chromium metal and ferrotitanium, used by steel, aluminum, chemical and superalloy producers for aerospace, automotive, energy, electronics, optics, chemicals, construction and other applications. Other key products produced by AMG include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.
The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG is a global leader in supplying technologically-advanced vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries. Examples of furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, vacuum precision casting, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis to customers through facilities equipped with vacuum heat treatment furnaces.
Timminco Limited is a majority controlled, publicly-listed subsidiary of AMG. Timminco is a leader in the production of upgraded metallurgical silicon for the rapidly growing solar photovoltaic energy industry. Timminco also produces silicon metal and magnesium products for use in a broad range of industrial applications.
AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, Canada, Mexico, Brazil and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website: www.amg-nv.com).
For further information please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 2508
Chief Financial Officer
Timminco Ltd. +1 416 364 5171
Executive Vice President and CFO
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