Timminco Ltd (TSX: TIM) is slashing production of solar grade silicon due to weak demand, shutting down two of the three purification lines it is currently operating.
For the second quarter of 2009, the company produced 243 metric tons of solar grade silicon from three purification lines out of an available seven. Due to weak market conditions in the solar photovoltaic energy industry, it only shipped 34 metric tons in the quarter, at an average selling price of C$39 per kilogram.
Reducing production will allow the company to further preserve working capital and save costs by temporarily reducing headcount by up to 60 employees. Timminco expects to resume production on the idled purification lines once demand recovers.
Timminco is 52.2 percent controlled by Euronext Amsterdam listed AMG Advanced Metallurgical Group NV.
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