Renewable Energy Corporation ASA (REC) is to stop production of Siemens-based solar grade polysilicon at its Polysilicon I facility in Moses Lake, Washington State, USA.
The company said that current price declines due to severe overcapacity in the sector and ongoing weak demand meant that market prices were below production costs. The closure of the facility will potentially result in the loss of 46 jobs at the site. REC said it would try and find positions at other plants.
Production at REC’s Polysilicon I facility was said to have 2,400 MT per annum.
Tore Torvund, President of REC Silicon said, “To remain competitive, the organization in Moses Lake has worked very hard this past year to drive operating costs down, but under these current economic conditions it is not viable to continue production when market prices for the Siemens solar chunk product has fallen well below the cost to produce it.”
However, REC highlighted that its granular solar grade polysilicon production remained in operation at its Butte facility and is expected to produce 20,000 MT of polysilicon in 2013.