REC Silicon

Regulatory Filings • Jan 15, 2020

REC Silicon - Manufacturers of U.S.-Made Polysilicon Praise Purchase Commitments in Phase 1 of U.S.-China Trade Deal

REC Silicon - Manufacturers of U.S.-Made Polysilicon Praise Purchase Commitments in Phase 1 of U.S.-China Trade Deal

WASHINGTON _ The United States' three remaining manufacturers of polysilicon

today thanked President Trump and praised U.S. negotiators for securing the

Chinese commitment to purchase U.S. polysilicon in the Phase 1 U.S.-China trade

deal, while noting any benefit for U.S. manufacturers and workers will depend on

how China implements the agreement.

Polysilicon is the 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. The

inclusion of polysilicon in the Phase 1 trade deal reflects recognition by U.S.

government officials of the U.S. polysilicon industry's strategic significance

to American defense and energy industries and future manufacturing innovation.

"We hope this agreement will result in a more level playing field for this

important building block to the solar and electronics industries," said Mark

Bassett, chairman and CEO of Michigan-based Hemlock Semiconductor Operations

(HSC). "Maintaining and expanding U.S. production capacity is vital to

supporting high-wage American manufacturing jobs based on high-tech innovation."

In 2014, China closed its market to U.S. polysilicon by imposing tariffs on

imports of U.S-made solar-grade polysilicon. China has heavily subsidized its

own polysilicon producers since imposing the tariffs on U.S. producers and has

focused on concentrating demand for polysilicon in China. This industrial policy

has created massive overcapacity in China, burdening the global industry and

worsening conditions for the U.S. polysilicon industry.

"Regaining meaningful market access to China, which represents over 92 percent

of global polysilicon demand, is essential to the U.S. polysilicon industry,"

said WACKER POLYSILICON Vice President Mary Beth Hudson, who is responsible for

the company's polysilicon plant in Tennessee. "This Phase 1 agreement represents

an important first step in resuming exports and meeting the increasing demand of

Chinese customers for highest quality polysilicon."

The existing Chinese tariffs forced REC Silicon last July to shutter its $1.7

billion polysilicon plant in Moses Lake, Wash., and lay off around 450 workers.

HSC had to abandon its investment of over $1 billion in a new, state-of-the-art

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.

REC Silicon still operates a plant in Butte, Mont., while HSC has operations in

Hemlock, Mich., and WACKER POLYSILICON has a plant in Charleston, Tenn.

"It is really positive that the U.S. government has recognized the importance of

the U.S. polysilicon industry. Being locked out of the global market for

polysilicon for the last several years has cost the U.S. high-paying jobs and

billions of dollars in investment," said Tore Torvund, CEO & President of REC

Silicon.

"While we hope that this partial restoration of access to China's polysilicon

market will improve the outlook for U.S. polysilicon producers, it's imperative

that the U.S. continues to focus on developing and strengthening critical links

in the solar value and supply chains, providing a market for our polysilicon and

other U.S. solar manufacturers here in the vibrant domestic U.S. solar market,"

he added.

For further information, please contact:

Francine Sullivan

REC Silicon VP Business

francine.sullivan@recsilicon.com

+1 509 750 1133

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 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 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. Wacker Polysilicon is part of Wacker (www.wacker.com), which has other

chemical facilities in the United States.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act