FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation announced today that it has sold its battery materials, fine cobalt powder and fine nickel powder operations to UMEX Inc., a wholly owned subsidiary of Union Minière of Belgium, for cash proceeds of C$37.4 million.
"This sale simplifies our company and permits us to maintain our focus on the commercialization of Westaim's leading-edge technologies which involve surfaced engineered products, biomedical coatings and electroluminescent flat panel displays," said Kevin Jenkins, President and CEO of Westaim. "We will also continue to operate three profitable business units which produce chemicals, coin blanks, and turbine engine materials used in the aerospace industry."
As part of the sale, Union Minière will take over the operations of the battery materials plant in Leduc, Alberta, and the fine cobalt powders plant in Fort Saskatchewan, as well as maintain ongoing research at Fort Saskatchewan. The battery materials business involves the production of spherical nickel hydroxide and lithium cobalt dioxide used in the portable rechargeable batteries market. Fine cobalt powders are used in cutting tools and other industrial applications, while fine nickel powders are used in electronic products.
"The sale is good for Westaim employees in the battery, fine cobalt and nickel powder operations because they will now be associated with Union Minière, the world leader in cobalt compounds and metallic raw materials for batteries," said Jenkins.
Union Minière's Corporate Vice President in charge of its Cobalt & Energy Products division, Thomas Leysen, commented, "We are excited by the prospects of this acquisition. We expect Union Minière to be able to leverage Westaim's battery operations and technology through our marketing capabilities and close relationships with battery manufacturers in Asia, America and Europe. Westaim's fine cobalt and nickel powders will also constitute a useful and highly complementary addition to Union Minière's own product range. In addition, we look forward to carrying out an important part of our research program for new generation battery materials and metal powders in Fort Saskatchewan"
Westaim will record a book loss of about C$24 million in the third quarter of 1997 as a result of the sale.
About Union Minière
Union Minière (UM) is a world leader in the non-ferrous metals sector. The UM Group, which employs more than 12,000 people, is established in several countries in Europe (mainly Belgium, France, Italy and Bulgaria), in the United States, Africa and the Far East. UM produces and sells more than 20 non-ferrous metals for basic and advanced technology industries. In 1996, UM generated revenue of 131 billion Belgian francs (C$4.7 billion).
About Westaim
Westaim has a portfolio of new business opportunities consisting of surface engineered products, electroluminescent flat panel displays and biomedical coatings. Westaim also manufactures aerospace materials, chemicals and coin blanks. Westaim is a TSE 300 company whose common shares are listed on The Toronto Stock Exchange, The Alberta Stock Exchange and the Montreal Exchange under the trading symbol "WED."
Contact:
Tony Johnston,
Senior Vice President, Corporate Affairs,
(403) 234-3103
Website: www.westaim.com
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