SunEdison has said the polysilicon ingot production operations for its semiconductor customers would be consolidated with the full closure of its facilities in Merano, Italy, and the transfer of 200mm diameter ingot production from St. Peters, Missouri to other overseas facilities.
The polysilicon facility in Merano was initially shuttered in December of 2011, due to declining market demand from key European semiconductor customers for 200mm wafers. However, SunEdison said the associated electronic grade TCS (trichlorosilane) operation at the plant would also close indefinitely.
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A total of approximately 200 employees at the Merano polysilicon plant and approximately 35 employees at the TCS plant would lose their jobs with the closures effective immediately.
The shift of small diameter semiconductor ingot production from its St. Peters plant would affect approximately 100 employees over the next 12 months, according to the company. Plants in Korea, Taiwan will absorb the production as well as its plant in Novara, Italy.
“We never take actions like these lightly. However, in light of current market conditions, today's announcement is necessary to preserve our strong competitive position and strengthen our future. We will make every effort to provide the necessary assistance to our affected employees,” said Shaker Sadasivam, executive vice president and president of semiconductor materials. “The decision to close the Merano polysilicon and TCS operations and to transition crystal operations is the result of our continuous efforts to improve the performance of our business through solutions that will keep these facilities economically strong.”
The company said that it would expect to record around US$37 million of fixed asset impairments for the year-ended December 31, 2013.
SunEdison had already undertaken site consolidation for 300mm and 200mm activites in 2013 and is planning to spin-off its semiconductor operations.