Amsterdam, 22. February 2008 --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") announced that its 50.6% owned subsidiary, Timminco Limited ("Timminco"; TSX: TIM), today announced that its Board of Directors has approved capacity expansion plans for the production of solar grade silicon at its wholly owned subsidiary, Bécancour Silicon Inc. ("BSI"). The expansion is expected to raise the total annual production capacity of its solar grade silicon facilities to 14,400 metric tons from 3,600 metric tons. The expansion is expected to have a capital cost of approximately C$ 65 million and will be completed by mid 2009, on a schedule that will enable BSI to meet all current customer commitments.
The expansion will include a new production facility equal in capacity to the manufacturing plant currently being commissioned. In addition, new production lines will be installed in BSI's existing silicon metal facility in Bécancour to process first pass material. The balance of the project will comprise the construction of new buildings for packaging and shipping, maintenance and employee services. Funding of the project will be from current liquidity, customer deposits under long term supply agreements and expected cash flow from operations and will be expended throughout 2008 and the first half of 2009.
Existing long term customer supply contracts commit BSI for delivery of up to 6,000 metric tons per year beginning in 2009, and BSI has a pipeline of prospective customers who have expressed interest in entering into long term purchase commitments with BSI for solar grade silicon.
"The demand from customers and prospects for our solar grade silicon has confirmed the business case for expansion of our production facilities," said Mr. René Boisvert, President and CEO of BSI. "With the commencement of production in our new facility we can now direct our project team to replicate that facility to strengthen Timminco's position as a leader in production of solar grade silicon."
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 three segments: Advanced Materials, Engineering Systems and Timminco.
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).
