GFAT has decided to build a new silicon metal plant in the province of Quebec (Canada). The project has been structured in two phases of three furnaces of 25 MW each. The first phase will have an annual production capacity of 50,000 tons of silicon metal and it is expected to start operations in late 2017 representing a total investment of USD 200 M.

The main reasons that have driven to this decision are the following:

1. The Government of Quebec has shown a clear commitment to the project.

2. Quebec has a very competitive cost of energy from renewable sources, a good taxation structure and very good access to raw materials.

3. This plant would serve the U.S. silicon metal market (330,000 tons size in 2013), which is one of the most attractive in the world and offers the best growth prospects of the Western markets.

4. The most important silicon metal manufactures in North America are Globe Specialty Metals (150,000 tons capacity) followed by Dow Corning (own consumption only). The imports of silicon metal (about 50 % of consumption) come mainly from Brazil, South Africa, Europe and China (This last only for Canada).

5. CRU estimates that the installed capacity in North America is 244,000 tons and it is not expected to increase in the next two years.

• [Editor:Ginna]