REC Silicon ASA - Solar Trade Dispute with China Forces Layoffs
02 7월 2018 - 2:00PM
Moses Lake, Washington - July 1, 2018: REC Silicon
ASA (REC Silicon)
REC Silicon will execute a layoff affecting nearly
40% of its current workforce in Moses Lake, Washington on July 2,
2018. This layoff will impact approximately 100 employees across
the company and is a direct result of the on-going solar trade
dispute between China and the United States. Due to this on-going
trade dispute, the company has not been able to access its critical
market in China since 2014. This has caused successive reductions
in REC Silicon's operations in the United States.
REC Silicon has decided to reduce its production
at Moses Lake to approximately 25% of total production capacity.
This decision is in response to the solar trade dispute between
China and the United States and reduced demand for solar grade
polysilicon. The actions taken today will help maintain the
company's liquidity, its ability to meet financial obligations, and
maintain REC Silicon's capability to resume manufacturing
operations when access to China's polysilicon markets is
restored.
REC Silicon's management regrets today's lay-off
of our highly-skilled colleagues. We have done all we can to avoid
today's action, but we have no choice while the China market
remains closed. It is a tremendous injustice that the hard-working
Americans, who have made REC Silicon the polysilicon industry's
technology leader and one of the most competitive producers in the
world are now losing their jobs. REC Silicon can out-compete its
foreign rivals, and we can do it from our manufacturing locations
here in the United States. We simply need fair access to the
China market.
REC Silicon invested $1.7 Billion to construct a
state of the art, cost leading solar grade polysilicon production
facility in Moses Lake, Washington in 2010. At its peak in 2011,
REC Silicon generated $1 Billion in annual revenues from its
operations in the United States and provided approximately 900 high
paying jobs. Approximately 95% of REC Silicon's revenues are
generated from sales in markets outside the United States. As a
consequence of the on-going solar trade dispute with China, REC
Silicon has executed successive layoffs to preserve its operations
in the United States. After the layoff today, the company will
continue to employ approximately 400 people at its facilities in
Moses Lake, Washington and Butte, Montana. As a direct result of
the solar trade dispute, REC Silicon's workforce has declined by a
total of 500 jobs since 2011. During the same period, the company's
revenues have declined by over 70% to $272 Million in 2017.
REC Silicon's fluid bed reactor (FBR) production
facility in Moses Lake, Washington produces the lowest unsubsidized
cost solar polysilicon in the world. Because REC Silicon employs a
highly cost competitive manufacturing technology, the company's
products are competitive without trade protection. President
Trump and U.S. Trade Representative Robert Lighthizer committed to
pursue a resolution of the AD/CVD measures imposed by the
Government of China on U.S. polysilicon. There has not been a
resolution nor any re-opening of the China market to REC Silicon.
It is now absolutely urgent that the U.S. Government takes steps to
re-open the China market for U.S. polysilicon production to avoid
further job losses, avoid the loss of U.S. technology leadership,
to preserve this important part of the solar energy supply chain in
the United States, to allow REC Silicon to re-start production, and
most importantly allow us to re-hire our skilled and dedicated
workers.
REC Silicon's markets for semiconductor grade
polysilicon and silicon gas products have not been impacted by the
solar trade dispute. REC Silicon's operations in Butte, Montana
will continue to support these markets.
REC Silicon currently has approximately $42
Million in cash deposits and expects to report approximately $58
Million in revenues for the second quarter of 2018. Second quarter
FBR production is expected to be 2,040 MT or 240 MT below the
guidance on April 26, 2018. The results for the company's
semiconductor segment and silicon gas sales are expected to be near
guidance. Current market conditions will negatively impact the
company's profitability and credit risk exposure. REC Silicon
expects to recognize additional impairments to inventories,
accounts receivable, and fixed assets in its second quarter
earnings release on July 19, 2018.
Conference call
REC Silicon will host a conference-call to answer
questions from investors, analysts and other interested parties on
2 July at 8:00 am CET.
To join this event, please use the below Click to
Join link 5-10 minutes prior to start time, where you will be asked
to enter your phone number and registration details. Our Event
Conferencing system will call you on the phone number you provide
and place you into the event. Please note that the Click to Join
link will be active 15 minutes prior to the event.
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Use the Click to Join option above for the easiest
way to join your conference or view the complete list of access
numbers and conference start times
For further information, please contact:
Francine Sullivan, Vice President Business Development
REC Silicon ASA
Phone: +1 509 750 1133
Email: francine.sullivan@recsilicon.com
James A. May II, Chief Financial Officer
REC Silicon ASA
Phone: +1 509 989 1023
Email: james.may@recsilicon.com
Nils O. Kjerstad
IR Contact Europe
Phone: +47 9135 6659
Email: nils.kjerstad@crux.no
About REC Silicon
REC Silicon is a leading producer of advanced silicon materials,
delivering high-purity polysilicon and silicon gas to the solar and
electronics industries worldwide. We combine over 30 years of
experience and proprietary technology with the needs of our
customers, and annual production capacity of more than 20,000 MT of
polysilicon from our two US-based manufacturing plants. Listed on
the Oslo Stock Exchange (ticker: REC), the company is headquartered
in Fornebu, Norway.
For more information, go to:
www.recsilicon.com
This information is subject to the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: REC Silicon ASA via Globenewswire
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