Rec Silicon: US / Chinese solar trade war will force shutdown of remaining production capacity
Fornebu, Norway - REC Silicon ASA anticipates that if the solar trade war continues and the 57 percent duty on its solar grade polysilicon imports into China remains, a complete shutdown of its remaining production capacity in Moses Lake, Washington U.S. will be required, and approximately 400 out of the current 720 employees will have to be laid off.
Little progress has been made on resolving the part of the solar trade war that adversely impacts solar grade polysilicon manufactured in the U.S., despite an enormous amount of recent work by numerous parties, led by U.S. Trade Ambassador Froman. This despite the fact that the White House, Chinese solar industry associations including CCCME, and affected Chinese and U.S. PV companies have recently made significant progress towards a deal which would resolve the solar panel trade dispute between the U.S. and China. However without a solution also for polysilicon, there will be no resolution of the trade war. Washington Governor Jay Inslee and U.S. Senators, Patty Murray and Maria Cantwell, have also been actively engaged in obtaining a global resolution to the solar trade war.
REC Silicon remains hopeful that China will proceed to make a deal on U.S. polysilicon in connection with the current opportunity for a global resolution of the solar trade war, which creates substantial value and multiple benefits for China.
REC Silicon's FBR polysilicon production process uses 90% less power to produce its polysilicon than the traditional Siemens process, which is currently still utilized across the majority of the polysilicon manufacturing industry. As a result, REC Silicon is the world's lowest cost producer of high quality solar grade polysilicon.
Source: IWR Online, 24 Sep 2015