AMG subsidiary Timminco completes divestiture of magnesium business
(Thomson Reuters ONE) - Amsterdam, 27 July 2009 --- AMG Advanced Metallurgical Group N.V.'s("AMG", EURONEXT AMSTERDAM: "AMG") 52.2% owned subsidiary, TimmincoLimited ("Timminco" or the "Company") (TSX:TIM) announced that it hascompleted the divestiture of its magnesium business, with the closingof the merger of Timminco's remaining magnesium extrusion andspecialty metals business with the magnesium operations of Winca TechLimited, a leading Chinese-based producer of magnesium products("Winca"), to form Applied Magnesium International Limited ("AppliedMagnesium").The merger was effected through the sale by each of Timminco andWinca of certain of their subsidiaries, intellectual property rights,equipment, non-cash working capital and other assets to AppliedMagnesium, including Timminco's facility in Nuevo Laredo, Mexico andWinca's facilities in Hebi and Linyi, in the Henan and Shandongprovinces, respectively, of the People's Republic of China. Keysenior managers and employees of Timminco's magnesium business haveaccepted employment with Applied Magnesium and will form the coremanagement team of its North American operations, based in Denver,Colorado.In connection with the sale, Timminco received a 19.5% equityinterest in Applied Magnesium as well as promissory notes of AppliedMagnesium in the aggregate principal amount of $3.7 million. Wincaholds the remaining equity and has received a promissory note fromApplied Magnesium in the principal amount of $4.0 million. Theequity interests in Applied Magnesium are subject to a shareholdersagreement, which includes board representation and special approvalrights in favour of minority shareholders, as well as share transferrestrictions. The promissory notes issued to Timminco arenon-interest bearing and subject to additional conditions, includingthe financial performance and liquidity of Applied Magnesium."We are pleased to have closed the transactions with Winca ascontemplated by the agreements executed in April," said John Fenger,President and Chief Operating Officer of Timminco. "The completionof the divestiture of our magnesium business will enable us to focuson our core silicon businesses."About AMGAMG, incorporated in the Netherlands, is a global leader in theproduction of highly engineered specialty metal products and advancedvacuum furnace systems. AMG serves growing industries worldwide withits unique combination of metallurgical engineering expertise andproduction know-how. AMG is a market leader in many of its productsand systems, which are critical to the production of key componentsfor the aerospace, energy (including solar and nuclear), electronics,optics, chemicals, construction and transportation industries. AMGhas two operating divisions of businesses, Advanced Materials andEngineering Systems, and owns majority interests in publicly-listedcompanies Timminco Limited (TSX: "TIM") and Graphit Kropfmühl AG(Deutsche Börse: GKR.DE).The Advanced Materials Division develops and produces niche specialtymetals and complex metals products, many of which are used indemanding, safety-critical, high-stress environments. AMG is one ofa limited number of significant producers globally of niche specialtymetals, such as ferrovanadium, ferronickel-molybdenum, aluminummaster alloys and additives, chromium metal and ferrotitanium, usedby steel, aluminum, chemical and superalloy producers for aerospace,automotive, energy, electronics, optics, chemicals, construction andother applications. Other key products produced by AMG includespecialty alloys for titanium and superalloys, coating materials,tantalum and niobium oxides, vanadium chemicals and antimonytrioxide.The Engineering Systems Division designs, engineers and producesadvanced vacuum furnace systems and operates vacuum heat treatmentfacilities. AMG is a global leader in supplyingtechnologically-advanced vacuum furnace systems to customers in theaerospace, energy (including solar and nuclear), transportation,electronics, superalloys and specialty steel industries. Examples offurnace systems produced by AMG include vacuum remelting, solarsilicon melting and crystallization, vacuum induction melting, vacuumheat treatment and high pressure gas quenching, vacuum precisioncasting, turbine blade coating and sintering. AMG also providesvacuum case-hardening heat treatment services on a tolling basis tocustomers through facilities equipped with vacuum heat treatmentfurnaces.Timminco Limited is a majority controlled, publicly listed subsidiaryof AMG. Timminco is a leader in the production of upgradedmetallurgical silicon for the rapidly growing solar photovoltaicenergy industry. Timminco also produces silicon metal for use in abroad range of industrial applications.Graphit Kropfmühl AG is a majority controlled, publicly listedsubsidiary of AMG. Based on its secure raw material sources inAfrica, China and Europe, Graphit Kropfmühl is a specialist in theproduction of silicon metal and the extraction, processing andrefining of natural crystalline graphite for a wide range of energysaving industrial applications.AMG operates globally with production facilities in Germany, theUnited Kingdom, France, Czech Republic, the United States, Canada,Mexico, Brazil, Sri Lanka and Australia and also has sales andcustomer 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 4901Jonathan CostelloVice President of Corporate Communicationsjcostello(at)amg-nv.comDisclaimerCertain statements in this press release are not historical facts andare "forward looking." Forward looking statements include statementsconcerning AMG's plans, expectations, projections, objectives,targets, goals, strategies, future events, future revenues orperformance, capital expenditures, financing needs, plans andintentions relating to acquisitions, AMG's competitive strengths andweaknesses, 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 theindustries and the political and legal environment in which itoperates and other information that is not historical information.When used in this press release, the words "expects," "believes,""anticipates," "plans," "may," "will," "should," and similarexpressions, and the negatives thereof, are intended to identifyforward looking statements. By their very nature, forward lookingstatements involve inherent risks and uncertainties, both general andspecific, and risks exist that the predictions, forecasts,projections and other forward looking statements will not beachieved. These forward looking statements speak only as of the dateof this press release. AMG expressly disclaims any obligation orundertaking to release publicly any updates or revisions to anyforward looking statement contained herein to reflect any change inAMG's expectations with regard thereto or any change in events,conditions or circumstances on which any forward looking statement isbased.http://hugin.info/138060/R/1331039/314816.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 27.07.2009 - 15:49 Uhr
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