Timminco Announces Supply Relationship With Canadian Solar Inc.
Timminco Limited (“Timminco”)(TSX: TIM) today announced that its wholly-owned subsidiary, Becancour Silicon Inc. (“BSI”), has identified that Canadian Solar Inc. (“CSI”)(NASDAQ: CSIQ) is one of its customers, under the long term supply agreement announced by Timminco on April 4, 2007. BSI and CSI have together achieved certain milestones with respect to delivery, consistency and quality of BSI’s solar grade silicon. CSI is expected to purchase up to 5,000 metric tons of solar grade silicon through 2011 at a price substantially less than the current contract prices for polysilicon. BSI has delivered 16 metric tons of solar grade silicon in 2007 and expects to deliver 450-500 metric tons to CSI in 2008.
Dr. Shawn Qu, Chairman and CEO of CSI commented: “BSI is a leading silicon producer and we are pleased to have collaborated with them on solar grade silicon since early 2007. In making this announcement we have together achieved a technical landmark in the PV industry.”
“We are very happy to announce our relationship with CSI as a strategic partner in the development of our solar grade silicon.” said Mr. Rene Boisvert, President and CEO of BSI. “We are pleased to have achieved the necessary milestones to permit commercialization by CSI of their use of our product.”
ABOUT TIMMINCO
Timminco is a leader in the production and marketing 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 also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.
ABOUT CANADIAN SOLAR INC.
Founded in 2001, CSI is a vertically integrated manufacturer of solar module and customer-designed solar application products serving worldwide customers. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications.
CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information”, as such term is defined in applicable Canadian securities legislation, concerning Timminco’s future financial or operating performance and other statements that express management’s expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “anticipates”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “plans” and variations of such words and phrases, or by statements that certain actions, events or results “may”, “will”, “could”, “would” or “might”"be taken”, “occur” or “be achieved”. In this news release, such information includes statements regarding agreements and commitments to supply solar grade silicon. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Timminco operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies.
Timminco cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Timminco’s actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to: limited history with solar grade silicon production; expansion of solar grade silicon production and sales; production capacity expansion at the Becancour facilities; protection of intellectual property rights; increasing and maintaining the purity of solar grade silicon; long-term contracts for supplying solar grade silicon; selling prices for solar grade silicon; price volatility for silicon metal; pricing and availability of raw materials for silicon metal and solar grade silicon production; dependence upon power supply for silicon metal production; cost of solar grade silicon production; price volatility for magnesium metal; magnesium supply chain interruptions; dependence upon key customers of magnesium extruded and fabricated products; manufacturing cost reduction initiatives; financing requirements for capital expenditures; limitations under existing credit facilities; foreign currency exchange; dependence upon key executives and employees; customer concentration; completion and integration of potential acquisitions, partnerships or joint ventures; risks with foreign operations and suppliers; environmental, health and safety laws and liabilities; equipment failures; transportation disruptions; conflicts of interest; intellectual property infringement claims; new regulatory requirements; labour disputes; and changes in tax laws. These factors are discussed in greater detail in Timminco’s Annual Information Form for the year ended December 31, 2007, which is available via the SEDAR website at www.sedar.com. Although Timminco has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this news release is made as of the date of this news release and Timminco disclaims any intention or obligation to update or revise such information, except as required by applicable law.
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Contacts: Timminco Limited Robert J. Dietrich Executive Vice President – Finance and CFO (416) 364-5171 (416) 364-3451 (FAX) Email: rdietrich@timminco.com
SOURCE: Timminco Limited