MONTRÉAL, July 31, 2018 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) ("5N Plus" or the "Company"), a leading producer of engineered materials, announced today that it is doubling the capacity of its ultra-high purity Semiconductor plant located on its Montreal campus to enable its Electronic Materials division to satisfy the growing demand for the Company's specialty semiconductor materials, which are becoming the materials of choice for advanced sensing and imaging technologies utilized in a new generation of medical devices, and in security and defense applications. The Company's strategic plan 5N21, launched in 2016, identified the specialty semiconductor sector as one of the key growth areas. Under this plan, the Company plans to grow the revenue contribution from this sector to 15% of the Group's total revenue by 2021. This investment is expected to be completed by mid-2019 and is included in the overall investment envelope envisioned under 5N21 which aims to deliver US$45 million Adjusted EBITDA along with 17% return on capital employed by 2021.
The portfolio of ultra-pure semiconductor engineered materials produced by 5N Plus reaches purity levels of more than 99.99999% (7N) and are increasingly being used in several sensing, imaging and opto-electronic applications across growing industries. In the medical industry, these materials are critical for detectors in dental x-ray imaging systems, bone mineral density measurements and advanced single photon emission computed tomography (SPECT) molecular imaging systems. In the recent past, the Company has developed ultra-pure semiconductor products targeting the next generation of x-ray computed tomography (CT) medical imaging systems. These materials enable multi-color imaging capabilities and reduction in radiation dosage; all of which are expected to markedly improve safety and reliability of diagnostics.
Within the security industry, the Company is experiencing increased demand for materials related to advanced detectors in gamma-ray, x-ray and neutron radiation with emphasis on enhanced resolution and expanded capabilities across various applications including baggage screening, civil nuclear safety, hazardous material detection, liquid detection and other safety and security related applications. Within the defense industry, the demand for the Company's products comes from applications related to high performance infrared imagery, early detection systems and various surveillance applications for which high-purity semiconductor engineered materials provided by 5N Plus play a crucial role in improving system sensitivity and device imagery.
Nicholas Audet, Executive Vice President, Electronic Materials commented, "Over the last two decades, 5N Plus has developed a wide spectrum of precursors which are recognized, worldwide, as the reference materials for the fabrication of advanced solid-state semiconductor detectors." Mr. Audet added, "Given the emergence of more stringent requirements within healthcare, security and defense industries, 5N Plus is uniquely positioned to address these opportunities. This investment will not only support the growing market demand but will also reinforce 5N Plus' global leadership position in this field." Mr. Audet concluded, "We are proud to be working in partnership with our customers and to be supporting their technology and business development roadmaps with the aim of developing and supplying materials which can satisfy their highest quality and performance requirements."
About 5N Plus Inc.
5N Plus is a leading producer of engineered materials. 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 pharmaceutical, healthcare, renewable energy, aerospace, security and sensing, imaging, technical and industrial materials, extractive and catalytic materials, and animal feed additive industries.
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' 2017 MD&A dated February 20, 2018 and note 12 of the unaudited condensed interim consolidated financial statements for the three-month periods ended March 31, 2018 and 2017 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, also in charge of investor relations, 5N Plus Inc., (514) 856-0644 x6178, [email protected]