Wacker’s polysilicon sales slump to new historical low

Wacker reported polysilicon sales of €152.5 million in the second quarter of 2020, down around 10% from the prior year period. However, the Q2 2020 revenue reached a new company record low.

Major polysilicon producer Wacker Chemie has reported polysilicon sales of €152.5 million in the second quarter of 2020, a new low, due to weak demand and lower utilisation rates, resulting in losses of €35 million for its polysilicon division.

Wacker continues to be impacted by China’s efforts to become fully self-sufficient in the production of high-purity polysilicon for the solar industry, coupled with suppressed upstream demand with polysilicon average selling prices remaining at historically low levels. Only manufacturers with new advanced polysilicon plants are profitable, but margins have been eroded. 

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

Wacker reported polysilicon sales of €152.5 million in the second quarter of 2020, down around 10% from the prior year period. However, Q2 2020 revenue reached a new company record low. 

The firm slumped to a €35 million loss owing to to demand and ASP issues, further impacted by lower polysilicon plant utilisation rates. A year ago, Wacker had pursued a policy of full utilisation rates as it gambled unsuccessfully on polysilicon ASPs rising and being able to sell through higher inventory levels at higher margins on the back of strong demand. EBITDA was also impacted in the reporting quarter due to further reductions in inventory valuation adjustments.

Its earnings margin was -22.9% in Q2 2020, compared -7.4% in the previous quarter.

Wacker had previously said that its polysilicon division would make losses on par with those in 2019, despite cost cutting measures. However, losses are already higher than those set in the first half of 2019. 

27 June 2024
9am BST
FREE WEBINAR -This special webinar will take a deep dive into the latest PV ModuleTech Bankability Ratings pyramid, capturing the relative bankability status of the top 70-80 PV module suppliers globally. In addition to revealing the latest ranking of global PV module suppliers, PV Tech’s Head of Research, Finlay Colville, will show the depth of analysis and commentary included within the report for module suppliers. A key output from the webinar will be to learn which PV module suppliers have moved up the rankings pyramid in recent years and why this growth has been achieved. Conversely, some of the companies that have fallen down the rankings will be discussed, in particular those suffering from market-share losses and financial problems.
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.

Read Next

June 14, 2024
PV Tech's coverage of the SNEC 2024 trade show continues on day two, kicking off with a discussion with GCL System Integration.
June 13, 2024
Tongwei has continued to increase its investment in HJT cell and module technology and built a green supply chain for its PV cells.
June 7, 2024
Chinese solar manufacturing giant LONGi Green Energy has addressed rumours it is planning to shut down production at its facilities in Southeast Asia in response to US import tariffs coming into force.
June 6, 2024
A leading PV technologist has called for new cell testing standards to safeguard against failures in TOPCon and HJT modules.
June 6, 2024
University of New South Wales' Bram Hoex discusses why stability is as important as the higher efficiencies offered by cell technologies such as TOPCon and HJT.
June 5, 2024
GCL Tech is to build the Middle East's first polysilicon plant and the company's first overseas facility in the UAE.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia