Timminco Ltd. said Friday it completed a joint venture with Dow Corning Corp., which is investing $40.3 million for a 49 percent stake in Timminco's Quebec Silicon operations.
The joint venture involves silicon metal production facilities in Becancour, Quebec. Silicon metals are used in the chemicals, electronics and solar energy industries.
Timminco will hold a 51 percent stake through its Becancour Silicon subsidiary, which could earn up to $10 million in additional payments if certain production goals are reached within three years. Becancour Silicon's senior management team will continue to manage the day-to-day silicon metal manufacturing operations of Quebec Silicon going forward.
Dow Corning also is providing a $10 million revolving credit facility to Quebec Silicon for working capital.
Timminco and Becancour Silicon will use the proceeds to pay off a revolving credit facility and term loan with Bank of America totaling about $27.7 million.