Timminco Limited (TSX: TIM) announced plans to expand by fourfold the production of solar grade silicon at its subsidiary, Bécancour Silicon Inc. (BSI).
The expansion is expected to raise the total annual production capacity of its solar grade silicon facilities in Bécancour, Québec, to 14,400 metric tons from 3,600 metric tons. The expansion is expected to have a capital cost of approximately $65 million and will be completed by mid 2009.
Timminco said 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.
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, the company said.
Existing long term customer supply contracts commit BSI for delivery of up to 6,000 metric tons per year beginning in 2009, and BSI said it 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 Timminco Limited
Timminco Limited produces and markets of lightweight metals, specializing in solar grade silicon for the rapidly growing solar photovoltaic energy industry. Using its proprietary technology, Timminco processes metallurgical grade silicon into low cost solar grade silicon for use in the manufacture of solar cells. Timminco has expanded its solar grade silicon capacity to 3,600 mt per year, and plans to further increase capacity to meet anticipated future demand. Timminco also produces alloy magnesium, silicon metal and specialty ferrosilicon, calcium and strontium alloys for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.
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