REC Silicon

Regulatory Filings • Oct 23, 2019

REC Silicon ASA - Manufacturers of U.S.-Made Polysilicon Call for End to Chinese Tariffs During Meeting Today with U.S. House Manufacturing Caucus

REC Silicon ASA - Manufacturers of U.S.-Made Polysilicon Call for End to Chinese Tariffs During Meeting Today with U.S. House Manufacturing Caucus

Washington, DC, October 22, 2019: The three largest manufacturers of polysilicon

in the United States stressed today that Chinese tariffs imposed on U.S.-made

polysilicon over the past five years have put the industry at risk, making the

U.S. effectively reliant on China for this critical material.

During a meeting with the U.S. House Manufacturing Caucus at the Cannon House

Office Building, leaders from Hemlock Semiconductor Operations (HSC), REC

Silicon and Wacker Chemie AG shared with members of Congress the effect the

Chinese tariffs have had since they were imposed in 2014. U.S. polysilicon

exports to China have dropped by nearly 90%, from $1 billion in 2011 to $107

million in 2018.

Polysilicon is a fundamental building block for the semiconductor and solar

industries, used to make ingots and wafers for solar cells and the integrated

circuits that power everything from smartphones to autonomous vehicles and

electronics. The U.S. polysilicon industry represents over $10 billion in

capital investment and employs thousands in high-skilled, high-wage jobs.

"Preserving U.S. production capacity is vital for maintaining U.S. competitive

advantages in critical defense, energy and innovation industries," said Phil

Dembowski, Senior Vice President and Chief Commercial Officer of Michigan-based

HSC. "Through these tariffs, China is effectively trying to corner the world

market on this important building block for the solar and electronics

industries."

REC Silicon produces polysilicon at a plant in Butte, Mont., but was forced to

shutter its $1.7 billion plant in Moses Lake, Wash., in July because China has

effectively shut out U.S. imports. HSC was forced to close a nearly new

polysilicon plant in Tennessee in 2014 after the Chinese tariffs took effect. A

SunEdison polysilicon plant in Pasadena, Texas, closed in 2015 and was purchased

by a Chinese company, allowing China access to SunEdison's patented technology.

"We produce some of the lowest cost high-purity polysilicon in the world at our

U.S. plants, but China's actions have forced us to halve our production and lay

off around 600 workers," said Francine Sullivan, REC Silicon's Vice President of

Business Development. "Allowing the Chinese to have these unfair tariffs while

subsidizing its own polysilicon production is costing the U.S. high paying jobs

and billions of dollars in investment."

Christian Westermeier, Vice President of Sales and Application Engineering for

Germany-based Wacker Chemie AG, joined with WACKER POLYSILICON Vice President

Mary Beth Hudson to add their voices to calls for change.

"When WACKER invested $2.5 billion to build its polysilicon plant in Tennessee,

it was our biggest investment we had ever made in the U.S. in our more than 100-

year history," Westermeier said of the plant that opened in 2016. Hudson added,

"Unfortunately, even while the global solar - and semiconductor - markets are

growing, China's determination to dominate this industry worldwide has left U.S.

producers with an ever-smaller share of this important energy source."

The three industry leaders called for polysilicon to be included in ongoing U.S.

trade talks with the Chinese, and for the federal solar tax credit to be

extended. They'd also like to see more programs and investment incentives to

develop and strengthen critical links in the U.S. solar value and supply chains.

U.S. House Manufacturing Caucus Co-Chairmen Tom Reed, R-N.Y., and Tim Ryan, D-

Ohio, said Tuesday's meeting was a chance for caucus members to learn more about

manufacturers critical to maintaining the U.S. lead in defense, energy and

innovation industries. Members of Congress and staff from Michigan, Tennessee,

Montana and Washington state attended, as did others interested in polysilicon

trade issues.

About Hemlock Semiconductor

Hemlock Semiconductor (hscpoly.com) is composed of several joint venture

companies owned by DuPont, Corning Inc., and Shin-Etsu Handotai. Hemlock

Semiconductor, located since 1961 in Hemlock, Mich., is a leading provider of

polycrystalline silicon and other silicon-based products used in the

manufacturing of semiconductor devices, solar cells, and modules. It's the only

manufacturer of polysilicon headquartered in the United States.

About REC Silicon

REC Silicon ASA is a leading producer of advanced silicon materials, supplying

high-purity polysilicon and silicon gases to the solar and electronics

industries worldwide, with over 30 years' experience and best-in-class

proprietary technology. REC's production facilities are comprised of two U.S.-

based silicon materials plants in Moses Lake, Wash., and Butte, Mont. REC

Silicon's corporate headquarters is in Fornebu, Norway.

About Wacker Polysilicon

Wacker Polysilicon is a global leader in the production of hyperpure

polysilicon, used in semiconductors and the growing solar energy market. The

Germany-headquartered company began producing polysilicon in Charleston, Tenn.,

in 2016. It also has other chemical facilities in the United States.

For further information, please contact:

Francine Sullivan, Vice President Business Development

Phone: +1 509 750 1133

Email: francine.sullivan@recsilicon.com

Nils O. Kjerstad IR Contact

Phone: +47 9135 6659

Email: nils.kjerstad@crux.no

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act