Dynex signs new R&D funding and technical support agreements
(Canada Newswire Via Acquire Media NewsEdge) Listing: TSX Venture ExchangeSymbol: DNX
LINCOLN, England, March 18, 2014 /CNW/ - Dynex Power Inc., a leading
specialist high power semiconductor company, today announced that two
new agreements have been signed with its majority shareholder, Zhuzhou
CSR Times Electric Co., Ltd., to share the costs of carrying out R&D
projects for high power semiconductor devices and to provide technical
assistance to CSR Times Electric's new IGBT fabrication facility in
China. These new agreements provide continuity to arrangements that
expired at the end of last year.
Originally, Dynex and CSR Times Electric signed a forty month agreement
on the funding of the R&D Centre in Lincoln covering the period
September 2010 to December 2013. The new R&D agreement covers the
funding of the R&D Centre for the period January 2014 to December 2016.
It is estimated that the cost of the R&D Centre will be £19.9 million
and it is agreed that CSR Times Electric will provide funding of 80% of
the costs and that Dynex will contribute 20%. Under the agreement, CSR
Times Electric will be making an advance payment of approximately £4.0
The R&D Centre will continue to concentrate on developing new products
and technologies to meet the growing demand for power semiconductor
products both in China and the rest of the world. Key market sectors
targeted will be railway transportation, wind power, smart grids and
electric cars; key products will be IGBT modules, high power thyristors
and silicon carbide power devices.
Dynex and CSR Times Electric signed a three year agreement on technical
support in January 2011. The new technical assistance agreement covers
further technical support for the period January 2014 to December 2016.
It is estimated that CSR Times Electric will pay Dynex £2.6 million for
support over this period including an advanced payment of approximately
£500,000. Under the new agreement, Dynex will provide technical support
to the development and ramp up of CSR Times Electric's new IGBT
fabrication facility in China. In the future, Dynex will have access to
this new, low cost, high volume, medium power facility to complement
its own IGBT fabrication facility in the UK which will concentrate on
supplying lower volume, higher power modules.
Dr. Paul Taylor, President and Chief Executive Officer said, "I am
delighted to have reached agreement on the further funding of the R&D
Centre and on the provision of technical assistance to CSR Times
Electric. The R&D funding agreement enables us to expand further the
R&D work we are doing. This will underpin the development and the
growth of the business in the medium and long term. The technical
assistance agreement provides Dynex with a continuing source of revenue
and helps ensure that we will have access to a low cost, medium power
fabrication facility in the future."
Bob Lockwood, Finance Director and Chief Financial Officer, added, "The
new R&D agreement continues the successful arrangement that has been in
place for the last forty months and enables us to expand further the
work we do in R&D. The technical assistance agreement likewise enables
us to extend a successful collaboration with CSR Times Electric and
will provide us with access to new markets in the future. "
About the Company
Dynex designs and manufactures high power bipolar semiconductors, high
power insulated gate bipolar transistor (IGBT) modules, high power
electronic assemblies and radiation hard silicon-on-sapphire integrated
circuits (SOS IC's). The company's power products are used worldwide in
power electronic applications including electric power transmission and
distribution, renewable and distributed energy, marine and rail
traction motor drives, aerospace, electric vehicles, industrial
automation and controls and power supplies. Our IC products are used in
demanding applications in the aerospace industry. Dynex Semiconductor
Ltd is its only operating business and is based in Lincoln, England in
a facility housing the fully integrated silicon fabrication, assembly
and test, sales, design and development operations. Dynex is majority
owned by Zhuzhou CSR Times Electric Co., Ltd.
Zhuzhou CSR Times Electric Co., Ltd. is based in Hunan Province in the
People's Republic of China. It is listed on the Hong Kong Stock
Exchange. CSR Times Electric is mainly engaged in the research,
development, manufacture and sales of locomotive train power
converters, control systems and other train-borne electrical systems,
as well as the development, manufacturing and sales of urban railway
train electrical systems. In addition, CSR Times Electric is also
engaged in the design, manufacturing and sales of electric components
including power semiconductor devices for the railway industry, urban
railway industry and non-railway purposes.
Press announcements and other information about Dynex Power Inc are
available at www.dynexpower.com.
Information about Dynex Semiconductor Ltd and its products can be found
Further information on CSR Times Electric can be found at www.timeselectric.cn/en
All monetary values expressed in this release are in Canadian Dollars
unless stated otherwise.
The TSX Venture Exchange has neither approved nor disapproved of the
information in this press release.
SOURCE DYNEX POWER INC.
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