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Dow Corning buys 49 p.c pie in Timminco

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CIOL Bureau
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SAN JOSE: Through the signing of a new agreement, Dow Corning Corp. will acquire a 49 percent ownership interest in Timminco Ltd.'s silicon metal manufacturing facility in Becancour, Quebec. The transaction has been estimated at $39.7 million.

Under the terms of the agreement the two companies will form a joint venture consisting of the existing silicon metal operations of Becancour Silicon Inc., which is currently a wholly owned subsidiary of Timminco. The Becancour site will initially produce 47,000 metric tons of silicon metal, and Dow Corning will receive 49 percent of this.

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Sources say that this new acquisition will facilitate Dow Corning's global strategy of ensuring that they have an efficient and sustainable supply of silicon metal which is used to manufacture all their silicon-based products.

Sources say that the transaction should be completed by September 30, 2010. A recent report from Dow Corning posted their consolidated net income as $220.7 million for the second quarter of 2010, an increase of 91 percent from consolidated net income of $115.4 million reported for the second quarter of 2009.

The company reported record sales of $1.54 billion in the second quarter of 2010, which was 30 percent higher than sales of $1.19 billion in the same quarter of 2009. Sales in the first half of 2010 were $2.90 billion, 31 percent higher than sales of $2.22 billion reported in the first half of 2009.

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