AMG Subsidiary Announces Solar Grade Silicon Supply Agreement
Amsterdam, 19. December 2007 —AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) announced that its 50.6% owned subsidiary Timminco Limited (“Timminco”; TSX: TIM), through its wholly-owned subsidiary, Bécancour Silicon Inc. (“BSI”) has announced that 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 Bécancour, Québec. 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. René Boisvert, President and CEO of BSI.
AMG, incorporated in the Netherlands, is a leading global specialty materials company offering highly engineered metallurgical products and advanced vacuum furnace systems to a broad range of end markets. AMG utilizes its proprietary know-how to supply sophisticated metals and materials through its production and sales activities in 12 countries on five continents. In addition, AMG designs, engineers and produces advanced vacuum furnace systems for growing industries globally. AMG’s metallurgical expertise has enabled it to capture leading market positions for many of its products and systems. Most of AMG’s products and systems are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG is organized into two business units: Advanced Materials and Engineering Systems.
The Advanced Materials unit 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, ferrotitanium, aluminium master alloys and additives, silicon metal (including solar grade), chromium metal and magnesium alloys, used by steel, aluminium, silicones and superalloy producers for aerospace, energy, electronics, optics, chemicals, construction and transportation applications.
The Engineering Systems unit designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG sells vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries.
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
Certain statements in this press release are not historical facts and are “forward looking”. Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. With respect to Timminco, such statements include comments regarding the status and capacity of the three production lines of the new 3,600 MT solar silicon plant. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based is expressly disclaimed.