Amsterdam, 7 July 2009 — AMG Advanced Metallurgical Group N.V.’s (“AMG”, EURONEXT AMSTERDAM: “AMG”) 52.2% owned subsidiary, Timminco Limited (“Timminco”; TSX: TIM) announced today that the Québec Members of Cabinet have approved a proposed debt financing for Bécancour Silicon Inc., a wholly-owned subsidiary of Timminco, by way of a two-year term loan of C$25.0 million. This loan would be provided by Investissement Québec under the Renfort program and disbursed in full upon completion of the transaction. The funds would be used for general working capital purposes.
“We are pleased by the Québec government’s decision in favour of this investment in our company,” said René Boisvert, President and CEO of Bécancour Silicon. “Bécancour Silicon has been a proud member of the Bécancour community for 35 years. In addition to the strong potential for our historical silicon metal business, our proprietary process for producing solar grade silicon provides us with a significant opportunity in the solar energy industry. These funds will help position us to capitalize upon opportunities as our customer demand recovers.”
“The loan attributed today will help a key player in Québec’s industry, Bécancour Silicon, get through the worldwide economic storm” declared Québec’s Minister of Finance and Minister of Economic Development, Innovation and Export Trade, Mr. Raymond Bachand.
“This announcement is an eloquent example of the Québec government’s commitment towards Québec businesses. I am very proud of it” added Quebec’s Minister of Transport, Mrs. Julie Boulet.
The proposed loan would be interest-bearing and include certain financial and other covenants. It would also be secured by Bécancour Silicon’s assets and subordinated to the existing revolving credit facilities provided by Timminco’s senior secured lender, Bank of America, N.A. The transaction is subject to execution of definitive documents and satisfaction of other conditions, including consent of Timminco’s other secured lenders.
About Investissement Québec and the Renfort Program
Investissement Québec’s mission is to promote the growth of investment in Québec and thereby contribute to economic development and job creation. The Renfort program was launched in December 2008 by Québec’s Ministry of Economic Development, Innovation and Export Trade (MEDIET) as a working capital and investment program designed to stabilize successful companies experiencing temporary difficulties because of the economic situation. This program has C$1.2 billion in funding and offers loans and loan guarantees to companies in operation for at least three years that carry out their main activities in Québec.
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.
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 majority interests in publicly-listed companies Timminco Limited (TSX: “TIM”) and Graphit Kropfmühl AG (Deutsche Börse: GKR.DE).
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.
Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of AMG. Based on its secure raw material sources in Africa, China and Europe, Graphit Kropfmühl is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.
AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, Canada, Mexico, Brazil, Sri Lanka 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. +1 610 975 4901
Vice President of Corporate Communications
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. 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 AMG’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based.Download PDF