Kemet Selected To Receive a Department of Energy Recovery Act Grant http://finance.yahoo.com/news/Kemet-Selected-To-Receive-a-prnews-2162224213.html?x=0&.v=1
* Press Release
* Source: KEMET Corporation
* On Wednesday August 5, 2009, 2:35 pm EDT
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GREENVILLE, S.C., Aug. 5 /PRNewswire-FirstCall/ -- KEMET Corporation (OTC Bulletin Board: KEME - News), a leading manufacturer of tantalum, multilayer ceramic, solid aluminum, plastic film, paper and electrolytic capacitors, today learned that the company has been selected as one of thirty companies to receive a grant from the Department of Energy for a project that is expected to create over 110 new jobs in South Carolina. The award will enable the company to produce film and electrolytic capacitors within the United States to support alternative energy products and emerging green technologies such as hybrid electric drive vehicles. KEMET is receiving a grant for $15.1 million and is one of only two capacitor manufacturers in the group to receive an award.
"The President of the United States announced today the funding of $2.4 billion in grants to accelerate the manufacturing and development of the next generation of U.S. batteries and electric vehicles," stated Per Loof, KEMET's Chief Executive Officer. "KEMET was notified today by the Department of Energy that our company was chosen to receive a Department of Energy Recovery Act Grant. We are pleased to be part of this distinguished group of businesses to receive a grant and we are confident that we are well positioned to move forward with our plans to build manufacturing capability at our headquarters in Simpsonville, SC. This added capacity will enable KEMET to produce the capacitors that are needed in the U.S. to support the development of green technologies and alternative energy. As we already have the physical facility, the grant will be supporting the purchase of the actual manufacturing equipment, giving us the opportunity to bring capacity online in a matter of months. This is truly a win-win-win opportunity as it creates jobs, helps the environment and benefits our shareholders," continued Loof.
KEMET is expecting to receive a letter later this week which will detail the next steps in this process.
"The grant will provide the required resources for KEMET to increase capacity in the U.S. for DC bus capacitors, which reduces the supply chain risk that Electric Drive Vehicle manufacturers face with the current dependence on offshore or non USA suppliers for this key subcomponent," stated Dr. Daniel Persico, KEMET's Vice President of Strategic Marketing and Business Development. "The investment in domestic expertise in this area is an important step in developing the U.S. as the leader in the Electric Vehicle Drive subcomponent field for the foreseeable future," continued Persico.
KEMET Corporation (KEME.OB) applies world-class service and quality to deliver industry-leading, high-performance capacitance solutions to its customers around the world. KEMET offers the world's most complete line of surface-mount and through-hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. Additional information about KEMET can be found at http://www.kemet.com.
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about KEMET Corporation's (the "Company") financial condition and results of operations that are based on management's current expectations, estimates and projections about the markets in which the Company operates, as well as management's beliefs and assumptions. Words such as "expects," "anticipates," "believes," "estimates," variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.
Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to, the following: (i) the Company's ability to consummate the tender offer for the Notes and accomplish its financing plan described in the Offer to Purchase; (ii) generally adverse economic and industry conditions, including a decline in demand for the Company's products; (iii) the ability to maintain sufficient liquidity to realize current operating plans; (iv) adverse economic conditions could cause further reevaluation of the fair value of the Company's reporting segments and the write down of long-lived assets; (v) the cost and availability of raw materials; (vi) changes in the competitive environment of the Company; (vii) economic, political, or regulatory changes in the countries in which the Company operates; (viii) the ability to successfully integrate the operations of acquired businesses; (ix) the ability to attract, train and retain effective employees and management; (x) the ability to develop innovative products to maintain customer relationships; (xi) the impact of environmental issues, laws, and regulations; (xii) the Company's ability to achieve the expected benefits of its manufacturing relocation plan or other restructuring plan; (xiii) volatility of financial and credit markets which would affect access to capital for the Company; and (xiv) increased difficulty or expense in accessing capital resulting from the delisting of the Company's common stock from the New York Stock Exchange. Other risks and uncertainties may be described from time to time in the Company's reports and filings with the Securities and Exchange Commission.
Contact: Dean W. Dimke
Director of Corporate and Investor Communications