Dynex Power Announces New Loan Agreement with CSR Times Electric
Loan Enables Purchase of New Equipment to Realize Higher Standards and Increase Capacity
Listing: TSX Venture Exchange
LINCOLN, England, April 16, 2014 /CNW/ - Dynex Power Inc., a leading specialist high power semiconductor company, today announced that it had borrowed C$5.1 million from CSR Times Electric. The loan was taken to purchase new production equipment that will improve wafer process control and quality management and achieve higher product standards. It will also increase capacity for new products in the IGBT wafer fab in Lincoln, UK. The loan is denominated in Chinese Yuan. It is repayable in 5 years and carries interest at 5%.
Dr. Paul Taylor, President and Chief Executive Officer said, "In rapidly overcoming the production yield issues reported January 22nd, we identified the need to improve certain production processes in order to consistently realize the new product selection standards. We determined that the next step was to install some new equipment that would give us better control of key production processes. The new equipment will also increase capacity for certain new processes and help us respond to a growing demand from China."
Bob Lockwood, Chief Financial Officer commented, "We could not fund this new equipment out of our existing facilities and CSR Times Electric offered to lend us the money at a good price with staged repayments from end of the third year until the end of the fifth year. It is extremely useful for us to be able to buy this equipment without using the banking facilities we use to run the business day to day."
About the Company
Dynex designs and manufactures high power bipolar semiconductors, high power insulated gate bipolar transistor (IGBT) modules, high power electronic assemblies and radiation hard silicon-on-sapphire integrated circuits (SOS IC's). The company's power products are used worldwide in power electronic applications including electric power transmission and distribution, renewable and distributed energy, marine and rail traction motor drives, aerospace, electric vehicles, industrial automation and controls and power supplies. Our IC products are used in demanding applications in the aerospace industry. Dynex Semiconductor Ltd is its only operating business and is based in Lincoln, England in a facility housing the fully integrated silicon fabrication, assembly and test, sales, design and development operations. Dynex is majority owned by Zhuzhou CSR Times Electric Co., Ltd.
Zhuzhou CSR Times Electric Co., Ltd. is based in Hunan Province in the People's Republic of China. It is listed on the Hong Kong Stock Exchange. CSR Times Electric is mainly engaged in the research, development, manufacture and sales of locomotive train power converters, control systems and other train-borne electrical systems, as well as the development, manufacturing and sales of urban railway train electrical systems. In addition, CSR Times Electric is also engaged in the design, manufacturing and sales of electric components including power semiconductor devices for the railway industry, urban railway industry and non-railway purposes.
Press announcements and other information about Dynex Power Inc are available at www.dynexpower.com.
Information about Dynex Semiconductor Ltd and its products can be found at www.dynexsemi.com.
Further information on CSR Times Electric can be found at www.timeselectric.cn/en.
All monetary values expressed in this release are in Canadian Dollars unless stated otherwise.
The TSX Venture Exchange has neither approved nor disapproved of the information in this press release.
SOURCE Dynex Power Inc.For further information:
Dr. Paul Taylor
President and Chief Executive Officer
Finance Director and Chief Financial Officer
Dynex Power Inc.
Tel: +44 1522 500 500