September 24, 2015 | By Barbara Vergetis Lundin

By William Pentland

REC Silicon may soon be counted among the casualties in the battle between the United States and China over solar panels.

Credit: HOMONSTOCK

At least that is the public relations spin the Norwegian polysilicon manufacturer seems to be putting on a possible suspension of operations at a factory in Moses Lake, Washington. The story behind the spin makes the silicon manufacturer seem more like a beneficiary than a casualty of the solar trade war.

Based in Norway, REC Silicon produces silicon materials for photovoltaic applications and multicrystalline wafers, as well as solar cells and modules at plants in Moses Lake, Washington and in Butte, Montana.

China imposed import duties of 57 percent on imports of polysilicon from the United States in retaliation for anti-dumping duties imposed by the U.S. on Chinese module and cell imports.

In July, REC Silicon reduced production at the facility in Washington State significantly and is now threatening to shut down the manufacturing facility entirely.

"The company has been caught in this protracted disagreement and I and my administration will continue to do everything we can to help resolve this issue and keep the Moses Lake plant open and its workers on the job," said the Governor of Washington Jay Inslee in a statement.

Governor Inslee will have to play catch up and the odds are decidedly not in his favor. REC Silicon is taking a page from Evergreen Solar's playbook. In 2011, Evergreen Solar closed its solar factors in Devens, Massachusetts, laying off 800 workers and shifting production to a joint venture with a Chinese company in central China. Evergreen cited the much higher government support available in China.

Like Evergreen, REC Silicon appears to have sold the crown jewels to an obscure joint venture in China.  In February 2014, REC Silicon entered into a joint venture agreement in China called the Yulin JV. REC Silicon has a 49 percent interest in the Yulin JV. Earlier this year, REC Silicon received $198 million in upfront payments for transferring its core polysilicon manufacturing technology to the joint venture in Yulin.

Even if the solar trade dispute is resolved, it seems like it would be a good idea for the folks employed by REC Silicon in Lake Moses to clean up their resumes.

For more:
- see this background article

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http://www.fierceenergy.com/story/evergreen-20-china-opens-new-front-solar-trade-war/2015-09-24