AMG subsidiary Timminco reaches new labour contract with employees at Becancour facilities
Amsterdam, 28 May 2009 — AMG Advanced Metallurgical Group N.V.’s (“AMG”, EURONEXT AMSTERDAM: “AMG”) 53.8% owned subsidiary, Timminco Limited (“Timminco”; TSX: TIM), announced that the hourly workforce at its Bécancour, 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 Bécancour facility.
“We are very pleased that our employees have shown such strong support for the new agreement,” said Mr. René Boisvert, President and CEO of Bécancour 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.
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 produces solar grade silicon for the 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
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