Unresolved US/China solar trade war might lead to layoffs at REC Silicon

If this happens, it would mean that approximately 400 out of the current 720 employees will have to be laid off. Tore Torvund, REC Silicon's CEO said, ”REC Silicon was brought into the solar trade war in retaliation for a dispute regarding imports of solar panels from China into the US. Now there is a resolution deal on the table between the U.S. and China that would provide Chinese panel companies with valuable market access in the U.S. provided that at solution can be found also for US polysilicon. A global resolution of both the Chinese solar panels and U.S. polysilicon trade barriers provides enormous benefits for the whole of China's dynamic and rapidly growing PV industry. We do not understand why China has not yet seized this unique opportunity for a mutually beneficial solar trade resolution, which would give China substantial financial returns.” He continues, ”Despite numerous negotiations, the polysilicon dispute is still unresolved. It is perplexing that Chinese polysilicon makers, who claim to have highly competitive production costs and only have capacity to serve less than half of China's growing polysilicon demand, could jeopardize the global resolution of the entire U.S. and China solar trade war. It is particularly baffling when additional competitive polysilicon supply is needed in China if its leading PV industry is to expand to its full potential to meet the world's increasing demand for solar energy. As we understand it, there will be no resolution on Chinese solar panels imported into the U.S. without a deal providing reasonable market access for U.S. polysilicon into China.” REC Silicon remains hopeful that China will proceed to make a deal on US polysilicon in connection with the current opportunity for a global resolution of the solar trade war.