AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: AMG) today announced that Becancour Silicon, Inc. ("BSI") has entered into an agreement to sell high purity silicon to a solar cell manufacturer. BSI is a wholly owned subsidiary of Timminco Limited (TSX: TIM); AMG owns 50.6% of the stock of Timminco Limited.
The agreement provides for shipments of 13,100 metric tons over a term of five years subject to production capacity expansion. The agreement represents BSI's third long term commercial contract for the sale of high purity silicon. BSI is currently constructing a facility to produce 3,600 metric tons of solar silicon per year at its location in Becancour, Quebec. That facility is expected to begin production in the fourth quarter of 2007, reaching full production capacity by the end of the first quarter of 2008. In addition to this expansion, additional capacity will be required over time to satisfy current contracted volumes and future demand.
"We are pleased at the solar industry's acceptance of BSI's technology and the execution of its third significant supply agreement. With its new contract, BSI has a base for further expanding its production of high purity silicon for the solar industry," said Dr. Heinz Schimmelbusch, CEO and Chairman of AMG's Management Board.
About AMG
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).
