Trade war fallout pushes REC Silicon to mulling sale of major US plant

Facebook
Twitter
LinkedIn
Reddit
Email
REC Silicon's shuttered Moses Lake facility in Washington. Source: REC Silicon

Norwegian polysilicon manufacturer REC Silicon is mulling selling its Butte, Montana silane gas facility as its business tanks because of the US-China trade war.

In a statement this week, the firm said the proceeds of any potential sale will be used to “retire the company’s debts, to provide a buffer for contingent liabilities (tax examination and indemnity loan).”

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The news comes just months after REC Silicon paused operations at its other major facility, Moses Lake in Washington state, laying off around 100 staff members.

Should the company finally opt to sell its Butte facility, the proceeds will also go towards restarting production at Moses Lake, a step the firm said will take once the trade dispute is “resolved”.

The goods produced in REC Silicon’s two US operations have been shut out of the world’s largest polysilicon market since China first imposed trade measures on US solar grade polysilicon in 2014, a feud that has escalated during US president Donald Trump’s tenure.

In August, the World Trade Organisation’s Dispute Settlement Body agreed to review whether the “safeguard measures” enacted on imports of crystalline silicon PV products by Trump’s administration last January  – which include duty rates of 30% and trade quotas over four years – should be made to comply with WTO rules.

At the close of September, REC Silicon had US$46.2 million in its coffers, according to a company trading update. The company forecasts a “sharp decline” in silicon gas shipments and expects to miss its 900 metric tonne forecast for the third quarter by 40 metric tonnes. It also expects semiconductor grade polysilicon sales to crash to 142 metric tonnes, down from 210 metric tonnes the quarter prior.

If the Montana operation is sold and Washington's remains shut, REC Silicon’s business will be reduced to its 15% stake in a polysilicon plant in Yulin, southeast China.

Roth Capital is advising the manufacturer on the possible divestment.

US solar prospects amid trade tensions and a changing incentive landscape will take centre stage at Solar Media's Solar & Storage Finance USA in New York on 29-30 October 2019.

21 May 2024
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 21-22 May 2024, will be our third PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2025 and beyond.
8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
22 October 2024
New York, USA
Returning for its 11th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
March 19, 2024
Texas, USA
Solar Media Events
March 26, 2024
Lisbon, Portugal
Solar Media Events
April 10, 2024
Dallas, Texas USA