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Rec Silicon will maintain Moses Lake operations

The polysilicon plant in Moses Lake will continue to produce 25 percent capacity in the hope that the US-China trade talks will allow Rec Silicon to access the Chinese market again. 

Commercial War Sensitive REC Silicon has decided to maintain the production at the Moses Lake factory in the US by 25 percent. The company writes in a stock exchange announcement . The fighting between China and the United States has for many years cut off Rec Silicon from exporting polysilicon, which is an important ingredient in the production of solar panels, to the Chinese market.

In the quarterly report for the fourth quarter of 2018, which was published on February 12, the company wrote that the board will consider a two-month production shutdown at the Moses Lake factory to reduce inventory. The decision would be made on the basis of whether the board considered it likely that trade agreements between the US and China could be expected to result in REC being able to regain access to the Chinese market.

After renewed hope for a solution in the commercial war, the board has thus received sufficient signals about just that. 

The company writes that "Rec Silicon is grateful and thanks the US government, especially President Trump and trade representative Lighthizer and his team, for prioritizing the interests of high-tech, innovative manufacturers such as the polysilicon industry".

Cut over 500 jobs

Rec Silicon believes that the "solar war" between China and the US has made it impossible for them to reach the Chinese market since 2014. Rec has had to cut 500 jobs since 2011 due to the trade conflict with China. Last year, this was intensified as a result of the increasingly extensive commercial war between the two great powers. In July, Rec saw to cut nearly 40 percent of the workforce at Moses Lake and reduce production to 25 percent. 

Rec Silicon built the prestigious Moses Lake, Washington in 2010, and invested $ 1.7 billion in the facility.

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