5N Plus intends to exit production of low-margin lead-based products for Industrial and Catalytic & Extractive sector applications
The Tilly,
Notwithstanding numerous optimization measures and investments made over the years to improve the site's competitiveness, the Tilly facility has been an unprofitable and high-cost operation for several years, a situation that has been exacerbated by current market and economic conditions, and further eroding its product margins. In addition, significant capital would be required in the near term to maintain the operations permit in compliance with environmental standards related to the production of lead-based products. 5N
"With no earnings or margin improvements in sight on the lead-based products it manufactures, and given the significant additional capital required to maintain operations, our current activities in Tilly are no longer economically viable or compatible with our long-term strategy, aimed at positioning 5N Plus for growth in value-added markets," said
Following the respect of the legal obligations in
Today's announcement has no impact on 5N Plus's other manufacturing, R&D or commercial activities.
Certain statements in this press release may be forward-looking within the meaning of applicable securities laws. Forward-looking information and statements are based on the best estimates available to 5N Plus at the time and involve known and unknown risks, uncertainties or other factors that may cause 5N Plus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward–looking statements. A description of the risks affecting 5N Plus 'business and activities appears under the heading "Risk and Uncertainties" of 5N Plus annual MD&A dated February 22, 2022, Q1 MD&A dated
Forward–looking statements can generally be identified by the use of terms such as "may", "should", "would", "believe", "expect", the negative of these terms, variations of them or any similar terms. No assurance can be given that any events anticipated by the forward–looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N Plus. The forward–looking information contained in this press release is made as of the date hereof and 5N Plus has no obligation to publicly update such forward–looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward–looking statements.
Furthermore, no decision has yet been taken with respect to the future of 5N
5N Plus is a leading global producer of specialty semiconductors and performance materials. The Company's ultra-pure materials often form the core element of its customers' products. These customers rely on 5N Plus's products to enable performance and sustainability in their own products. 5N Plus deploys a range of proprietary and proven technologies to develop and manufacture its products. The Company's products enable various applications in several key industries, including renewable energy, security, space, pharmaceutical, medical imaging and industrial. Headquartered in Montréal, Québec, 5N Plus operates R&D, manufacturing and commercial centers in strategically located facilities around the world including
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