REC Silicon

Regulatory Filings • Feb 7, 2024

REC Silicon Shutdown of Polysilicon Business in Butte

REC Silicon Shutdown of Polysilicon Business in Butte

Moses Lake, Washington USA -- February 7, 2024: REC Silicon ASA ("REC

Silicon"), announced that its wholly owned subsidiary REC Advanced Silicon

Materials LLC is shutting down its polysilicon production capacity at its

Butte, Montana facility.

The shutdown of the polysilicon business in Butte is primarily necessary due

to the regional structural imbalance in supply and demand for electricity and

is part of REC Silicon's strategy to ensure long-term profitable operations.

Discontinuing the polysilicon production at Butte will significantly reduce

annual energy consumption and operating costs.

The polysilicon business will continue to produce for approximately six to

nine months to fulfill polysilicon supply obligations to the company's

customers. After the supply obligations are satisfied, the company expects

that the workforce in Butte will be reduced accordingly, along with some

others across the company that support the Butte business line. The company is

working out the details with respect to the shutdown and will provide

additional information to impacted stakeholders as it becomes available.

"The decision to shut down the polysilicon business in Butte was very

difficult from a human perspective because of the impact on REC's workforce.

The team in Butte has been resilient and resourceful, making vast improvements

in our offerings and gaining a significant presence with key customers while

balancing a focus on quality and cost. I am grateful for their hard work and

dedication. We did everything in our power to return profitability to the

polysilicon business in Butte, however, forecasts for sustained high

electricity costs that are outside of our control necessitated this decision.

After the transition has been fully executed, we expect an accretive impact to

our earnings. Most importantly, we will have full focus on Butte's globally

leading silicon gases business. We will work towards executing more investment

and product opportunities available due to that leading position as well as

the tailwinds the Chips, IRA and Infrastructure Acts are providing," said Kurt

Levens, CEO.

The short and mid-term increased electricity pricing in the region is not

expected to abate and will not allow for profitable operations in the

polysilicon business line. The company took short-term mitigative measures

that included electricity hedging, optimized production, and increased sales

prices. These efforts minimized the losses in the short-term, however, the

decision taken is primarily about the mid to long-term viability of a very

power-intensive polysilicon process located in a high electricity cost region,

particularly relative to alternative manufacturers and regions. In keeping

with our long relationships and significant continuing presence in the

Semiconductor materials supply chain, REC Silicon will execute the shutdown in

a manner that balances the best interests of all stakeholders and previous

commitments.

Contacts

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Jack Yun

CFO, REC Silicon

jack.yun@recsilicon.com

Nils O. Kjerstad

IR Contact

Phone: +47 9135 6659

Email: nils.kjerstad@recsilicon.com

About Us

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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 over 30 years of experience and proprietary

technology with the needs of our customers, with 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: RECSI), the Company is

headquartered in Lysaker, Norway.

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

This information is subject to disclosure under the Norwegian Securities

Trading Act, §5-12. The information was submitted for publication at

2024-02-07 11:08 CET.