MONTREAL, Sept. 29, 2016 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) (the "Company" or the "Group"), the leading producer of specialty metal and chemical products, announced today its intention to consolidate the Company's operations at Wellingborough, U.K. with other sites within the Group. In addition, the Company will consolidate the operations of DeForest-Wisconsin, U.S.A. and Fairfield-Connecticut, U.S.A. during the first half of 2017 into a newly updated and scaled facility, located in the state of Connecticut. Earlier this month, the Company unveiled its strategic plan, dubbed 5N21, aimed at improving profitability while reducing earnings volatility. The plan is based on three main pillars, namely: a) Optimizing balance of contribution between upstream and downstream activities b) Extracting more value from core businesses, existing assets and capabilities c) Delivering quality growth from existing growth initiatives including future M&A activities.
Over the next few quarters, the Company will transfer a number of product lines from Wellingborough to other manufacturing facilities within the Group. During this time, the Company expects a seamless transition while serving its client base. Operational synergy, cost competitiveness and client proximity are the primary drivers in determining future locations of the affected product lines. The restructuring fees associated with these two initiatives are expected to be around $3.5 million with expected payback of less than two years. The positive impact from these initiatives will be progressive reaching full potential starting in 2018.
"These measures are tangible actions supporting our 5N21 Strategic Plan and this specific decision is designed to extract more value from our existing assets as we optimize our core businesses. The culmination of these actions will result in a more agile operating structure while taking advantage of internal synergies as we increase utilization across other sites within the Group." said Arjang Roshan, President and Chief Executive Officer of 5N Plus Inc.
About 5N Plus Inc.
5N Plus is the leading producer of specialty metal and chemical products. Fully integrated with closed-loop recycling facilities, the Company is headquartered in Montreal, Québec, Canada and operates manufacturing facilities and sales offices in several locations in Europe, the Americas and Asia. 5N Plus deploys a range of proprietary and proven technologies to produce products which are used in a number of advanced pharmaceutical, electronic and industrial applications. Typical products include purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, inorganic chemicals based on such metals and compound semiconductor wafers. Many of these are critical precursors and key enablers in markets such as solar, light-emitting diodes and eco-friendly materials.
Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology. Forward-looking statements are based on the best estimates available to 5N Plus at this time and involve known and unknown risks, uncertainties and 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' 2015 MD&A dated February 23, 2016 and notes 11 and 12 of the unaudited condensed interim consolidated financial statements for the three and six-month periods ended June 30, 2016 and 2015 available on SEDAR at www.sedar.com. 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 undertakes 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.
SOURCE 5N Plus Inc.
For further information: Jean Mayer, Vice President, Legal Affairs and Corporate Secretary, 5N Plus Inc., (514) 856-0644 x6178, firstname.lastname@example.org