Dynex Announces £12 Million Expansion Of IGBT Fabrication Facility & Initial Financing For The Project
Dynex Power Inc. announced that its UK subsidiary, Dynex Semiconductor Ltd., has received approval for a £12 million expansion of its IGBT fabrication facility and has arranged a £7.3 million loan facility from ICBC (London) Limited to help pay for the expansion.
Paul Taylor, President and CEO of Dynex, commented "The installation of two 6 inch IGBT wafer fabrication lines to replace our existing 4 inch line will enable us to increase output dramatically. We need to do this to service the demand from our new parent company, CSR Times Electric, for silicon wafers so that they can meet the power module needs of the Chinese rail operators. In addition to supplying the Chinese market, this expansion will make us more competitive with power semiconductor module supplies to the rest of the world."
Bob Lockwood, Chief Financial Officer, said "ICBC (London) Limited has provided us with a £7.3m revolving credit facility for the next twelve months. The facility has been guaranteed by CSR Times Electric. All drawings under the facility will incur interest at the appropriate LIBOR rate plus a margin of 1.35%. The facility is not intended to provide the long term financing structure for the expansion, but it does allows us to place orders and so get the project under way as quickly as possible. At the same time, we will take steps to put in place a longer term financing structure for this expansion project."