OTTAWA—A Montreal-based specialty metal and chemical products maker is receiving US$17.5 million in financing from Export Development Canada (EDC) as the company looks to grow its international operations.
EDC said the financing is part of a larger US$125-million credit facility provided to 5N Plus Inc., which manufactures specialty metals and chemicals used in advanced pharmaceutical, electronic, and industrial applications.
“As our revenues have shown in the last five years, our company has been focused on growth,” 5N president and chief executive Jacques L’Ecuyer said in a statement.
“This financing will be used to support our continued growth, and we feel that EDC is a great partner to have moving forward because they understand our international vision, and are well positioned to help us along our new strategic path.”
To date, 5N has grown largely through acquisitions, but its strategy moving forward is to increase value-added activities, expand recycling operations, broaden its presence in Asia, and capitalize on the international platform it has built.
Approximately 99 per cent of 5N’s Canadian sales are exports, demonstrating the strong global demand for its products.
Many of the purified metals produced, such as bismuth, gallium, germanium and tellurium, are critical precursors in growing markets for solar panels, light-emitting diodes (LEDs) and other eco-friendly materials.
“5N’s potential for international growth is tremendous, and EDC has the resources to help support that growth,” EDC’s senior vice-president of financing and investments, Carl Burlock, said.
“We can provide financing, market intelligence, and advice to help 5N, and other companies like 5N, establish and grow their presence in different parts of the world. Opening doors to new markets means more customers, and increased export sales.
According to EDC, six other financial institutions were included in the credit facility provided to 5N, with HSBC Bank Canada acting as the lead arranger.