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Declining prices whether on the spot market or long-term supply agreements are making business conditions very tough for polysilicon producers, regardless of their market size or purity of the material they produce. According to the latest financial results of Dow Corning, its JV subsidiary, Hemlock Semiconductor expects overcapacity in the sector to continue throughout 2012.
A key supplier of PV module encapsulant materials to the likes of First Solar, STR Holdings said that a 14.3% decline in average selling price (ASP) quarter-on-quarter was due to the need to maintain its market share with key customers. Falling module prices due to overcapacity is continuing to put pressure on the entire PV supply chain to lower prices.
Delayed fourth quarter and full-year results at LDK Solar show the full extent of the challenges facing the integrated PV manufacturer. Having already revised downwards its fourth quarter figures, the company missed revenue guidance and guided first quarter revenue to levels not seen since the second quarter of 2009. Loss from operations for the fourth quarter of fiscal 2011 was US$531.4 million on the back of heavy write downs across the company, leading to a net loss of US$588.7 million. Revenue reached US$2.15 billion in 2011, compared to US$2.5 billion in 2010.
Meyer Burger Technology advised that it had raised US$121.3 (CHF110 million) in long-term capital through a Swiss Franc dominated straight bond issuance. The bond holds a coupon of 5% payable annually and maturity date of May 24, 2017. Zürcher Kantonalbank, Credit Suisse and UBS Investment Bank collectively offered the bond issue to institutional and private investors.
As a direct result of REC announcing the closure of its 650MW multicrystalline wafer plant at Herøya, Norway by the second quarter of 2012, slurry recycling sub-contractor, SiC Processing has said that it would also close its 4 production lines at plant Heroya II with an annual capacity of 44,000 tons. The company said that 100 jobs would be lost.
As part of plans to increase hyperpure polysilicon production to meet customer demand, Wacker has officially started volume production at its latest plant in Nünchritz, Germany. Wacker said it had invested €900 million in the facilities, creating more than 500 new jobs. The 15,000MT polysilicon plant should reach full capacity within the next few weeks, Wacker said.
German-based companies involved in the supply of manufacturing equipment for the global solar industry had a record sales year in 2011, according to the latest report from trade association, VDMA. German equipment suppliers benefited from a focus on advanced cell technology that supported a global market share of 46% in 2011. However, overcapacity is impacting sales to major markets in Asia, particularly China, in 2012.
Although subject to court approval, a successful action sale of bankrupt firm, Timminco has taken place. QSI Partners has acquired silicon metal business and assets of Bécancour Silicon, including its 51% ownership interest in Québec Silicon for approximately $31.87 million. The solar grade silicon business and assets of Timminco Solar, a division of Bécancour Silicon, were sold to Grupo FerroAtlántica for approximately $2.7 million.
Poor demand for silver paste, primarily used in solar cell production, was highlighted by Ferro management as a key reason for lower quarterly earnings at Ferro Corporation. The company reported net sales of US$466 million for the three-month period ended March 31, 2012, compared with net sales of US$573 million in the first quarter of 2011.
Water treatment specialist, Stulz H + E has been acquired by RENA for an undisclosed sum. The company said that the German Federal Cartel Office had approved the transaction, which is expected to be completed in the second half of 2012.
