GEO PLANS TO NEARLY QUADRUPLE ITS GALLIUM CAPACITY WITH CONSTRUCTION OF AUSTRALIAN FACILITY
Source: GEO Specialty Chemicals, Inc.
Cleveland, Ohio. GEO Specialty Chemicals, Inc. announced today its plan to construct a major new gallium metal extraction facility in Pinjarra, Western Australia. The Pinjarra facility will cost approximately $40MM (USD) and is projected to be on-stream in the 2nd quarter of 2002. GEO estimates that the plant will have a capacity of up to 100mt/yr and will be the largest facility of its kind in the world.
GEO is working closely with Alcoa of Australia Limited and will source its feedstock from ALCOA s nearby Pinjarra alumina plant. The plant will utilize GEO s patented process technology, currently practiced at its site in Stade, Germany, to produce 4N (99.99%) gallium metal. GEO will then purify its gallium to 6N, 7N and MBE grades for the semiconductor and optoelectronics worldwide markets.
"GEO is committed to aggressively expand its capacity to extract and purify gallium metal," said George Ahearn, GEO Specialty Chemicals CEO. "We are responding to the explosive demand for gallium in today s high-technology wireless and LED products. Our new facility will help stabilize the worldwide supply and demand for gallium. At the same time, this major expansion will solidify our position as a world leader in gallium production."
GEO is currently the world s largest extractor of virgin gallium metal. The Pinjarra plant will nearly quadruple GEO s capacity to over 133mt/yr. Gallium is used primarily in the manufacture of optoelectronics such as LED s and semiconductors for wireless telecommunication applications.
GEO Specialty Chemicals is a global manufacturer of specialty chemicals serving the water-treatment, paper, coating, construction, optoelectronics, and compound semiconductor industries. GEO has fifteen plants in the USA, and two plants in Europe.
Forward-Looking Statements
Some of the statements made in this press release, including statements containing the words "believes," "intends," "expects," "plans," "estimates," "will" or similar words, constitute forward-looking statements under the federal securities laws. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of GEO or its industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Some of the factors that could cause or contribute to such a difference include: (a) changes in general economic conditions that might impact the demand for GEO s products, in the United States or in the foreign countries where GEO sells products; (b) decreases in customer spending levels due to general economic conditions or other factors affecting the volume of business of GEO s customers; (c) the increased risk during economic downturns that GEO s customers may declare bankruptcy or experience payment difficulties; (d) increases in GEO s cost of borrowing or a default or covenant violation under GEO s indenture or other material debt agreement; (e) GEO s inability to effectively integrate acquired businesses or efficiently expand operations, or its incurrence of greater than expected expenses in connection with operating acquired businesses or expanding operations; and (f) changes in environmental or other governmental regulations or enforcement.
Contact: Edward M. Freshman GEO Specialty Chemicals, Inc., 216.464.8336
Edward Rojeck Richards Communications, 216.514.7800
Edward M. Freshman
GEO Specialty Chemicals, Inc., 216.464.8336
Edward Rojeck
Richards Communications, 216.514.7800
