AMG affiliate Timminco to form joint venture with Dow Corning at Bécancour Silicon Metal Facilities

8/10/2010, 11:41 PM (Source: GlobeNewswire)

AMG-3.28%

13.865
Chart for: AMG
Amsterdam, 10 August 2010 --- AMG Advanced Metallurgical Group N.V.'s ("AMG",
EURONEXT AMSTERDAM: "AMG") publicly listed affiliate, Timminco Limited
("Timminco") (TSX:TIM) announced today that it has agreed to form a joint
venture with Dow Corning Corporation ("Dow Corning") at its silicon metal
production facilities in Bécancour, Québec. Dow Corning will acquire a 49%
equity interest in a new joint venture entity (the "Joint Venture") that will
own the existing silicon metal operations of Timminco's wholly-owned subsidiary,
Bécancour Silicon Inc. ("BSI"). In exchange, BSI will receive net cash proceeds
of $39.7 million on closing, and up to potentially an additional $10.0 million
after closing subject to achieving certain performance objectives relating to
production cost and capacity improvements. BSI will retain a 51% equity stake in
the Joint Venture.

All of the production output of the Joint Venture, which will be based on an
initial annual production capacity of 47,000 mt of silicon metal, will be split
between BSI and Dow Corning proportional to their ownership interests. All of
BSI's solar grade silicon purification operations and facilities at the
Bécancour site will remain with BSI.

"This joint venture with Dow Corning builds on a long and successful
relationship between the two companies and strengthens Timminco's position for
future growth opportunities," said Dr. Heinz C. Schimmelbusch, Timminco's
Chairman of the Board and Chief Executive Officer.

"This acquisition is well aligned with Dow Corning's global strategy of securing
an efficient supply of this critical raw material used to manufacture all of our
silicon-based products," said Robert Hansen, Dow Corning's executive vice
president and general manager of Core Products.

The Joint Venture, which will be known as "Québec Silicon", will acquire from
BSI all of the silicon metal production assets, including property, plant,
equipment, and certain net working capital items, and BSI's quartz mining lease
in Lac Malbaie, Québec. BSI will retain its silicon metal customer
relationships, and honour all existing contracts with such customers, through
BSI's proportional off-take of the Joint Venture's production.

All active employees associated with the silicon metal operations will be
transferred to the Joint Venture, which will assume certain liabilities
associated with such employees, including pension obligations. The transferring
employees include a majority of BSI's existing management team, which will
continue to manage and operate the silicon metal operations.

The creation of the Joint Venture and the closing of Dow Corning's acquisition
of its 49% equity interest are expected to occur on or about September
30, 2010. The closing is subject to satisfaction of customary closing
conditions, including regulatory approvals and consent of BSI's lenders. In the
event the conditions are not fulfilled and the transactions do not proceed, BSI
and Dow Corning have committed to alternative supply arrangements for 20,000
metric tons of silicon metal to be delivered in 2011.

About AMG
AMG creates and applies innovative metallurgical solutions to the global trend
of sustainable development of natural resources and CO(2) reduction.  AMG
produces highly engineered specialty metal products and advanced vacuum furnace
systems for the Energy, Aerospace, Infrastructure and Specialty Metals and
Chemicals end markets.  AMG consists of two operating divisions, Advanced
Materials and Engineering Systems, and owns interests in publicly-listed
companies Graphit Kropfmühl AG (Deutsche Börse: GKR.DE) and Timminco Limited
(TSX: "TIM").

The Advanced Materials Division develops and produces specialty metals, alloys
and high performance materials. AMG is a significant producer of specialty
metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys
and additives, chromium metal and ferrotitanium, for Energy, Aerospace,
Infrastructure and Specialty Metal and Chemicals applications.  Other key
products 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, primarily for the
Aerospace and Energy (including solar and nuclear) industries.  Furnace systems
produced by AMG include vacuum remelting, solar silicon melting and
crystallization, vacuum induction melting, vacuum heat treatment and high
pressure gas quenching, turbine blade coating and sintering.  AMG also provides
vacuum case-hardening heat treatment services on a tolling basis.

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.

Timminco Limited is a publicly listed affiliate of AMG. Timminco produces
silicon metal for the chemical, aluminum, electronic and solar industries.
Timminco also produces solar grade silicon, using its proprietary technology for
purifying silicon metal, for the solar energy industry.

With over 2,300 employees, AMG operates globally with production facilities in
Germany, the United Kingdom, France, Czech Republic, the United States, Canada,
Mexico, Brazil, and Sri Lanka and also has sales and customer service offices in
Belgium, Russia, China and Japan (www.amg-nv.com).

For further information please contact:

AMG Advanced Metallurgical Group N.V.    +1 610 975 4901
Jonathan Costello
Vice President of Corporate Communications
jcostello@amg-nv.com

Disclaimer

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.


AMG affiliate Timminco to form joint venture with Dow Corning at Bécancour
Silicon Metal Facilities


[HUG#1436990]








This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
All reproduction for further distribution is prohibited.

Source: AMG Advanced Metallurgical Group N.V. via Thomson Reuters ONE
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.