REC Silicon restarting FBR polysilicon production

Facebook
Twitter
LinkedIn
Reddit
Email

REC Silicon said it would restart FBR polysilicon production at its Moses Lake facility in the US this month, with full-production planned to be resumed in June, 2016. 

The company had previously said the shutdown was due to high polysilicon inventory levels and its cash position, on the back of the ongoing anti-dumping duties placed on US-based polysilicon into China as part of the wider solar trade war.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Tore Torvund, REC Silicon, CEO said: “We have reduced our inventories and market conditions have improved to the point to enable us to restart production in Moses Lake, with FBR cash costs near US$10/kg. Further, the maintenance work that has been completed during the curtailment period should allow us to run the FBR unit as well as Silane III and IV for two years without an extended outage.”

On a global basis, polysilicon had been in oversupply for several years but tight supply exists in China, due to the limited access polysilicon producers in the US (Hemlock, REC Silicon and SunEdison) have to the largest market after high anti-dumping duties were imposed and shipment loopholes closed. 

REC Silicon noted in its first quarter 2016 financial report that it expected around an extra 17,000MT of polysilicon to come on stream in 2016, compared to 72,000MT claimed in 2015, which has primarily been absorbed by global downstream PV installation growth. 

The company also noted in the filing that the potential shortage of solar wafer could lead to more stable polysilicon consumption and the return of price elasticity to polysilicon markets. However, low prices would continue to cause liquidity issues for higher-cost producers and could lead to further curtailment of production in 2016. 

REC Silicon also noted that capital expenditures would be limited to around US$11 million in 2016, around US$5 million lower than previously guided, due primarily to the completion of R&D activities to commercialize the second generation FBR technology (FBR-B).

Financials

REC Silicon reported first quarter revenue of US$68.8 million, compared to US$74.9 million in the previous quarter. EBITDA was negative US$13.4 million compared to negative US$29.6 million in the previous quarter, due to lower production costs on the shutdown of its Moses Lake facility. 

REC Silicon reported first quarter revenue of US$68.8 million, compared to US$74.9 million in the previous quarter. Image: REC Silicon

First quarter polysilicon production was 1,937MT, but FBR cash costs increased significantly to US$24.8/kg for the quarter, on low production utilisation. 

The company noted that the average solar grade polysilicon sales price during the quarter increased 6% from the previous quarter.

First quarter polysilicon production was 1,937MT, but FBR cash costs increased significantly to US$24.8/kg for the quarter, on low production utilisation. Image: REC Silicon

Finished goods inventory decreased by 1,925MT during the first quarter, compared to a 131MT inventory reduction in the previous quarter. Further inventory reduction was said to be expected in the second quarter of 2016, ahead of the restart of polysilicon production at Moses Lake.

21 October 2025
New York, USA
Returning for its 12th 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.
16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth 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 2027 and beyond.

Read Next

Premium
October 14, 2025
OCI Holdings’ decision this week to buy a Vietnamese solar wafer facility to supply the US solar cell manufacturing industry makes clear the biggest vulnerability facing the sector today.
October 14, 2025
Apple will support 650MW of projects as part of a major expansion of its renewable energy investments in Europe, aimed at reducing its carbon footprint.
Premium
October 13, 2025
Brett Beattie of Castillo Engineering looks at some of the key land grading work that can make multimillion-dollar differences to projects.
October 13, 2025
Korean chemical production firm OCI Holdings has acquired a 65% stake in a Vietnamese solar wafer production plant, intending to export solar wafers to the US.
October 13, 2025
The Trump administration has cancelled the 6.2GW Esmeralda 7 solar project in Nevada – once touted as one of the largest in the world.
October 13, 2025
ANSI has approved a new traceability standard proposed by the SEIA to improve transparency of the solar and storage supply chain.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK