Timminco cuts silicon production as demand drops
Wed Jul 22, 2009 9:26am EDT
* Temporarily reduces production to 1 line from 3 lines
* Up to 60 staff affected
* Shipped 34 metric tons of solar-grade silicon in Q2
* Average selling price C$39 per kilogram
OTTAWA, July 22 (Reuters) - Timminco Ltd (TIM.TO) will temporarily cut solar-grade silicon production and up to 60 staff as demand remains weak, but the company said production would resume once demand recovers.
Toronto-based Timminco said on Wednesday that scaling back production to one purification line at its Becancour plant in Quebec will allow it to preserve working capital and save money. It did not specify any amounts.
The company operated three of its seven purification lines in the second quarter, producing 243 metric tons of the silicon. It shipped 34 metric tons of it in the quarter, at an average price of C$39 per kilogram, due to "weak market conditions" in the solar energy sector.
In the first quarter, Timminco shipped 131 metric tons of solar-grade silicon at an average price of C$58 per kilogram.
Timminco has developed its own method of purifying silicon metal into solar-grade silicon, which is used in the manufacturing of solar cells. The company also produces silicon metal, used in a range of industrial applications in the aluminum, chemical, pharmaceutical, electronics and automotive sectors.
Timminco's shares closed on Tuesday at C$1.19 on the Toronto Stock Exchange. Year to date the stock has dropped about 70 percent. ($1=$1.10 Canadian) (Reporting by Susan Taylor, Editing by Maureen Bavdek)