Project to Commence Once Customer Secures Final FinancingGT
MERRIMACK, N.H., March 11, 2014 (GLOBE NEWSWIRE) — GT Advanced Technologies Inc., (Nasdaq:GTAT), today announced the signing of a $336 million supply agreement with Cosmos Chemicals Berhad to provide equipment and technology for a 25,0000 metric ton annual (MTA) polysilicon facility, a project sponsored by Saudi Arabia based Project Management & Development Company (PMD), that will be located in Sarawak, Malaysia. Under the terms of the agreement, which is subject to financing, GT will supply its complete suite of polysilicon production equipment and technology including engineering services, hydrochlorination, SDR™ CVD reactors, filament production, and polysilicon processing. Cosmos Chemicals Berhad is currently securing final financing for the project. Contingent upon completion of this step, GT expects the project to commence in phases beginning with the commissioning of engineering work followed by an equipment order.
“GT is excited to offer our latest full suite of polysilicon equipment and technology to the Cosmos Chemicals Berhad polysilicon project,” said Dave Keck, executive vice president of GT’s solar business. “The polysilicon market is improving with spot prices on the rise and supply and demand coming into balance. This is a good time to begin construction of a new plant so that it comes online timed to rising prices. GT has a successful track record of helping new market entrants establish world-class polysilicon production operations. Our proven polysilicon technology gives customers the ability to quickly achieve nameplate production capacity for high quality, low-cost polysilicon.”
The new polysilicon facility, once operational, will incorporate GT’s high volume hydrochlorination solution which can produce enough TCS to support over 10,000 MTA of polysilicon production from a single hydrochlorination fluid bed reactor in conjunction with GT’s latest TCS Siemens CVD reactors. This combination minimizes the capital equipment expenditure of the facility and lowers operating costs by reducing energy consumption of the polysilicon facility.
About GT Advanced Technologies Inc.
GT Advanced Technologies Inc. is a leading diversified technology company producing advanced materials and innovative crystal growth equipment for the global consumer electronics, power electronics, solar and LED industries. Its technical innovations accelerate the use of advanced materials, enabling a new generation of products across this diversified set of global markets. For additional information about GT Advanced Technologies, please visit www.gtat.com.
Certain of the information in this press release relates to the Company’s future expectations, plans, sales, products, product delivery and prospects for its business and industry that constitute “forward-looking statements” for the purposes of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to: the Company will supply its complete suite of polysilicon production equipment and technology including hydrochlorination, SDR™ CVD reactors, filament production, and polysilicon processing to its customer; the Company’s proven polysilicon technology gives customers the ability to quickly achieve nameplate production capacity for high quality, low-cost polysilicon; the customer’s new polysilicon facility will incorporate the Company’s high volume hydrochlorination solution which can produce enough TCS to support over 10,000 MTA of polysilicon production from a single hydrochlorination fluid bed reactor in conjunction with the Company’s latest TCS Siemens CVD reactors (and this combination minimizes the capital equipment expenditure of the facility and lowers operating costs by reducing energy consumption of the polysilicon facility); the customer and company will comply with the contract terms necessary for delivery of the products; the Company plans to successfully deliver the complete suite of polysilicon production equipment; and the Company’s ability to deliver a high volume hydrochlorination solution. These forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside the Company’s control, which could cause actual events to differ materially from those expressed or implied by the statements. Factors that may cause actual events to differ materially from those expressed or implied by our forward-looking statements include: the Company and the customer performing (and being able to perform) their obligations under the contract; the Company’s ability to complete development of and commercialize any new products; the impact of continued decreased demand and/or excess capacity in the markets for the output of the Company’s equipment; general economic conditions and the tightening credit markets having an adverse impact on demand for the Company’s products; limited sales of PV and other equipment products; the possibility that changes in government incentives may reduce demand for polysilicon and solar products, which would, in turn, reduce demand for our equipment; technological changes could render existing or proposed products or technologies obsolete; the Company may be unable to protect its intellectual property rights; competition from other manufacturers may increase; exchange rate fluctuations and conditions in the credit markets and economy may reduce demand for the Company’s products and various other risks as outlined inGT Advanced Technologies Inc.’s filings with the Securities and Exchange Commission, including the statements under the heading “Risk Factors” in the Company’s quarterly report on Form 10-Q for the quarter ended September 28, 2013. Statements in this press release should be evaluated in light of these important factors. The statements in this press release represent GT Advanced Technologies Inc.’s expectations and beliefs as of the date of this press release. GT Advanced Technologies Inc. anticipates that subsequent events and developments may cause these expectations and beliefs to change. GT Advanced Technologies Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.