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KEMET Blue Powder Corporation Meets All Conflict-Free Smelter Site Requirements

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KEMET Blue Powder Corporation Meets All Conflict-Free Smelter Site Requirements

PR Newswire

GREENVILLE, S.C., March 1, 2012 /PRNewswire/ -- KEMET Corporation (NYSE: KEM), a leading manufacturer of tantalum, ceramic, aluminum, film, paper and electrolytic capacitors, today announced its guarantee and commitment to all customers that all KEMET tantalum capacitors will be manufactured only from conflict-free tantalum. The recently announced acquisition of the Carson City, Nevada, USA tantalum capacitor powder manufacturing facility from Denham Capital LLC created a unique opportunity for KEMET to further secure this guarantee.  

The tantalum capacitor manufacturing facility, now known as KEMET Blue Powder Corporation (KBP), is site compliant with all requirements of the EICC/GeSi Conflict Free Smelter (CFS) Program. The facility was audited by a EICC/GeSi authorized third-party in the Fall of 2010 and was found to meet all CFS site requirements. At the time of the audit, some of the site raw material suppliers were awaiting their CFS audits, thereby creating a barrier to full compliance as stipulated per the CFS Program. With this acquisition, KEMET has ceased relationships with any non-CFS compliant raw material suppliers and will immediately source raw materials strictly from CFS compliant suppliers. 

The acquisition also brought exclusive rights to secure raw material from a new supplier, Tantalite Resources, in South Africa (TR). As this facility is yet to be brought fully on-line and therefore has no prior history, the CFS audit poses no issues to the KEMET conflict-free guarantee. TR will process conflict-free ore sourced from the KEMET associated mine in Kisengo in the conflict-free Katanga Province of the Democratic Republic of Congo. As such, KEMET guarantees that any raw material sourced for KBP to be conflict-free. KBP will not process any raw material from TR for commercial use prior to TR passing a third-party audit and all other applicable CFS compliance requirements, thereby ensuring KBP meets all of the raw material supplier requirements for CFS compliance.

KEMET expects that its vertically-integrated tantalum supply chain will meet all the requirements of section 1502 of Dodd-Frank and awaits the issue of this overdue rule from the U.S. Securities and Exchange Commission.

About KEMET

KEMET's common stock is listed on the NYSE under the symbol "KEM." At the Investor Relations section of our web site at http://ir.KEMET.com, users may subscribe to KEMET news releases and find additional information about our Company. KEMET applies world class service and quality to deliver industry leading, high performance capacitance solutions to its customers around the world and 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, generally adverse economic and industry conditions, including a decline in demand for the Company's products. 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

 

deandimke@KEMET.com

 

954.766.2806

SOURCE KEMET Corporation

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