Feb. 25 (Bloomberg) -- AMG Advanced Metallurgical Group NV, a Dutch maker of metals used in airplane parts, surged 18 percent in Amsterdam trading after announcing plans to quadruple its production of silicon for solar-power equipment.

AMG advanced 7.92 euros to 51.60 euros, the biggest jump since July 11, when it sold shares to the public. The company has a market value of 1.38 billion euros ($2.05 billion).

The Board of Directors of AMG's unit Timinco Ltd. approved plans to boost production at its solar grade silicon plants to 14,400 metric tons from 3,600, the company said in a statement distributed by Hugin on Feb. 22 after markets closed. AMG said in September it needed to expand capacity of its solar-silicon factory in Quebec, Canada after it received a five-year order.

``We see this as very good news,'' Filip de Pauw, an analyst at ING wholesale Banking in Brussels, wrote today in a note to investors. ``The capacity expansion is a clear sign that management is confident in signing new contracts.'' He recommends investors hold the stock.

AMG has headquarters in Amsterdam and Wayne, Pennsylvania. It makes products such as silicon, a crystalline element derived from quartz; titanium, used in parts of Boeing Co.'s aircraft; and ferrovanadium, a metal used to make steel stronger and lighter.

To contact the reporter on this story: Jeroen Molenaar in Amsterdam jmolenaar1@bloomberg.net;

Last Updated: February 25, 2008 12:14 EST