With polysilion spot prices heading for the low US$20/kg territory and well below small polysilicon producers' production cost levels, Motech Industries has decided to exit the polysilicon sector with the shutdown and sale of assets of its subsidiary, AE Polysilicon Corporation (AEP). Motech invested in AEP in 2006 as it started the development of high purity granular polysilicon, intended to provide lower cost polysilicon compared to conventional Siemens processes.
Motech said in a Taiwan Stock Exchange statement that it had a US$41 million financial exposure to AE Polysilicon, which consisted of investments totalling approximately US$26 million and prepayments of US$15 million.
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The company said it was initiating a workforce reduction at the polysilicon operations, while proceeding with a safe-shutdown of the manufacturing facilities. An asset sale is expected, which is pending approval by the stockholders of AEP.
AEP was located in Fairless Hills, Pennsylvania, US.
