Timminco agrees on revised multiyear solar-grade silicon deal with Q-Cells

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Timminco and Q-Cells have reached a new multiyear supply deal for solar-grade silicon, replacing the five-year agreement signed between the two companies in 2008. The new contract calls for deliveries by Timminco to Q-Cells of 100 metric tons of solar silicon for the rest of 2009.

The companies said that volumes, pricing, and other terms for deliveries of upgraded metallurgical silicon (UMG-Si) in 2010-2013 will be subject to mutual agreement by the end of this year and will be negotiated in the context of prevailing solar industry market conditions.

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Timminco (a unit of AMG’s Advanced Metallurgical Group) will also return the outstanding deposit of approximately €8.9 million to Q-Cells. The companies said they have agreed to a repayment schedule that will begin in 1Q2010 and be completed by the end of that year, and that Timminco will pay interest on the outstanding balance at an agreed rate.

“Q-Cells is a valued customer of Timminco,” said Rene Boisvert, president of Becancour Silicon Inc. “We look forward to continuing to build a long-term relationship with Q-Cells based on application of our UMG-Si technology.”

“We believe in upgraded metallurgical silicon as an important resource for the production of solar cells in the mid- to long-term perspective” said Anton Milner, CEO of Q-Cells. “Our technical department is working closely with Timminco to ensure that the material consistently meets our high-quality needs.”

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