REC Silicon

Regulatory Filings • Sep 22, 2015

REC Silicon ASA - Unresolved U.S./China Solar Trade War Will Force Shutdown of Remaining Moses Lake Capacity

REC Silicon ASA - Unresolved U.S./China Solar Trade War Will Force Shutdown of Remaining Moses Lake Capacity

Fornebu, Norway - [September 22, 2015]: REC Silicon ASA (REC Silicon)

anticipates that if the solar trade war continues and the 57% duty on its solar

grade polysilicon imports into China remains, a complete shutdown of its

remaining production capacity in Moses Lake, Washington U.S.A. will be required,

and 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. 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."

Little progress has been made on resolving the part of the solar trade war that

adversely impacts solar grade polysilicon manufactured in the U.S., despite an

enormous amount of recent work by numerous parties, led by U.S. Trade Ambassador

Froman. This despite the fact that the White House, Chinese solar industry

associations including CCCME, and affected Chinese and U.S. PV companies have

recently made significant progress towards a  deal which would resolve the solar

panel trade dispute between the U.S. and China.  However without a solution also

for polysilicon, there will be no resolution of the trade war.  Washington

Governor Jay Inslee and U.S. Senators, Patty Murray and Maria Cantwell, have

also been actively engaged in obtaining a global resolution to the solar trade

war.

REC Silicon remains hopeful that China will proceed to make a deal on U.S.

polysilicon in connection with the current opportunity for a global resolution

of the solar trade war, which creates substantial value and multiple benefits

for China.

REC Silicon's FBR polysilicon production process uses 90% less power to produce

its polysilicon than the traditional Siemens process, which is currently still

utilized across the majority of the polysilicon manufacturing industry.  As a

result, REC Silicon is the world's lowest cost producer of high quality solar

grade polysilicon.

For further information, please contact:

Francine Sullivan, VP Business Development and Legal

REC Silicon ASA

Phone: +1 509 750 1133

Email: francine.sullivan@recsilicon.com

Nils O. Kjerstad

IR Contact

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 25 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 Moses Lake, Washington

and employs approximately 720 people.

For more information, go to: www.recsilicon.com

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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