GEO Reaches Agreement with Alcoa Australia on Gallium Facility
Cleveland. GEO Specialty Chemicals, Inc. has reached an exclusive agreement for Australia with Alcoa of Australia Ltd. to provide feedstock for its planned gallium extraction plant in Pinjarra. The plant will be the largest of its kind with a capacity of up to 100mt/yr and uses GEO s patented process technology to produce 99.99% gallium metal. The metal will be further purified by GEO for use in semiconductor and opto- electronic applications.
"Despite the current unprecedented slow-down in semiconductor demand, we are confident of the industry s prospects," said George Ahearn, GEO s President & CEO. "Due to the poor market conditions and limited visibility, the plant start-up will be delayed until at least the 4th quarter of 2002. However, we continue to believe that a significant drawdown in gallium related end-user inventories is underway and we expect that the potential exists for a shortage of gallium, particularly in the 2nd half of next year," says Ahearn.
GEO is currently the world s largest producer of virgin gallium metal. The Pinjarra plant will nearly quadruple GEO s capacity to over 130 mt/yr.
GEO is a privately owned global manufacturer of specialty chemicals serving water treatment, coatings, construction, rubber & plastics, and electronic applications. GEO has nineteen (19) plants worldwide with corporate headquarters in Cleveland, Ohio.
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.
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Ed Rojeck of Richards Communications
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