Dynex Provides Update on IGBT Sales to China
Lincoln, England, October 25th, 2011 – Dynex Power Inc., a leading specialist high power semiconductor company, today issued investors with guidance regarding the recent reports from China about the potential of a temporary slowdown in investment in high-speed railway projects in China. Although high-speed rail projects have recently been slowed down, the amounts of planned investment have not been reduced. The delay has been imposed so that safety issues can be thoroughly examined following the high-speed rail crash. The impact of this delay is leading to a modest slowdown in IGBT sales to China. However, the medium-term demand for the types of IGBTs being manufactured at Dynex remains strong and will be further enhanced by other developments in China as the country places greater emphasis on developing its electricity generation, transmission and distribution networks.
Li Donglin, the Chairman of Dynex and Executive Director and General Manager of Zhuzhou CSR Times Electric said, “Investments in the Chinese railway system have temporarily slowed down because of the accident involving high-speed trains that occurred on 23rd July 2011. However, there is still a long-term and robust demand for the expansion of the Chinese national railway and urban metro systems, and the existing planned development of railways in China is being sustained. Therefore, we are fully confident in the IGBT demand for the national railway and urban metro markets in the medium and longer term. Moreover, China is now accelerating the development of renewable energy (for example, wind power and photovoltaic power generation) and increasing the construction of the smart electric grid. This will provides further strong demand for IGBTs. Furthermore, China’s emphasis on energy-saving, emission reduction and rapid development of high-voltage frequency converters and other energy quality management equipment, is expected to lead to an increasing demand for IGBT modules.”
Dynex’s President and Chief Executive Officer, Dr Paul Taylor added, “Although we indicated in our press release of 5th October that we expected a modest slowdown in our IGBT sales to China for railway applications, there are signs that this will be offset by other market demands, and we fully expect the balance of this year to unfold as indicated to investors at our AGM earlier this year. We currently have no intention of reducing our expectations for 2011 financial performance. Our recently announced investments in R&D and new product development are planned to take best advantage of the increased emphasis on renewable energy and smart grid applications both in China and the rest of the world.”
In commenting on its expectations, the Company cautioned existing and potential shareholders about relying on the Company’s expectations in that the Company’s expectations contain forward-looking statements and assumptions which are subject to the risks and uncertainties of the markets and the future, which could cause actual results to differ materially from expectations, and which are each difficult and subjective to forecast. Certain of those risks and uncertainties are discussed in the Management’s Discussion and Analysis for the quarter ended June 30th, 2011 and include, among other things, risks and uncertainties relating to: the level of worldwide demand for power semiconductors and power semiconductor assemblies; the level of investment in power electronic equipment, electrification of transport systems, alternative power generation and high quality power transmission and distribution; the worldwide demand for and supply of silicon; and fluctuations in exchange rates between Canadian Dollars, Sterling, US Dollars and Euros. As a consequence of these and other risks and uncertainties, shareholders and potential investors must make their own independent judgments about the accuracy and reliability of the Company’s expectations. Dynex disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise.
For more information:
Dr. Paul Taylor
President and Chief Executive Officer
Finance Director and Chief Financial Officer
Dynex Power Inc.
Tel: +44 1522 500 500