AMG Subsidiary Timminco signs definitive agreements with Winca to
merge magnesium businesses
Amsterdam, 9 April 2009 --- AMG Advanced Metallurgical Group N.V.'s
("AMG," EURONEXT AMSTERDAM: "AMG") 50.7% owned subsidiary, Timminco
Limited ("Timminco"; TSX: TIM) announced today that, further to its
announcement on February 18, 2009, Timminco has executed definitive
agreements with Winca Tech Limited, a leading Chinese-based producer
of magnesium products ("Winca"), to merge the principal components of
Timminco's magnesium and specialty metals business with all of
Winca's magnesium operations. The combined business will be known as
Applied Magnesium International ("AMI") and will be based in Denver,
Colorado. Timminco's equity interest in AMI will be approximately
20%. Personnel from Timminco's magnesium business are expected to
fill key management positions within AMI, and Timminco will also have
representation on the board of directors of AMI, along with Winca and
independent representatives.
The merger is expected to be completed by mid 2009. In the interim,
Timminco and Winca will operate under certain inventory transitional
arrangements that are designed to ensure that customer orders for
magnesium products and specialty metals continue to be fulfilled and
allow Timminco to negotiate future customer supply agreements for the
benefit of AMI. Completion of the merger is subject to a number of
conditions, including financing for AMI's operations, Timminco's
senior lender approval, and negotiation and execution of ancillary
agreements and arrangements regarding the structure and operation of
the combined business.
In addition, Timminco confirmed that the closure of its Aurora
magnesium extrusion operations and the recovery of working capital
from its magnesium business are proceeding as planned. Timminco
expects to generate net cash proceeds from these announced plans
during 2009.
"We are very pleased to have concluded these binding agreements with
Winca," said John Fenger, President - Light Metals of Timminco. "We
have identified numerous ways in which the merger of Timminco's and
Winca's operations will allow the two companies to build a strong
market position in magnesium and specialty metals, resulting in an
enhanced position to serve existing and new customers via a
compelling and stable value proposition."
"More than ever, we believe that the manufacturing presence and
technology synergies that exist between Winca and Timminco will allow
AMI to become one of the lowest cost and best quality magnesium
manufacturers in the world," said Dr. He Xu, Chairman of Winca. "Our
customers will be the ultimate winners with this partnership in that
AMI can now offer them high quality products via a much lower cost
and more reliable supply chain coupled with a highly experienced
technical sales and marketing team," added Dr. Aaron Fu, President of
Winca USA.
Established in 1996, Winca specializes in the production and sales of
magnesium alloy sacrificial anodes for electro-chemical corrosion
control, high purity magnesium, magnesium alloys, and magnesium
extrusions. The Winca College of Magnesium, located in Hebi, Henan
province of China, was co-established by Winca, the Hebi Institute of
Technology and the China Magnesium Association.
About AMG
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 is a leader in the production of upgraded
metallurgical silicon for the rapidly growing 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
Jonathan Costello
Director of Corporate Communications
jcostello@amg-nv.com
Timminco Limited +1 416 364 5171
Robert Dietrich
Executive Vice President and CFO
rdietrich@timminco.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 Subsidiary Timminco signs definitive agreements with Winca to
merge magnesium businesses
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
