REC Silicon lays off 30 workers in Montana

REC Silicon ASA (STO:RECO) cut 30 jobs at its solar grade polysilicon production plant in Butte, Montana, as a result of efficiency improvement and cost cutting measures and a change in strategy.

The polysilicon and silicon gases producer said on Wednesday that the workforce reduction has already been undertaken. It explained that the move became necessary after it lowered production at the Butte site due to restrictions on solar grade polysilicon from the ongoing solar trade war between the US and China. REC Solar will shift the polysilicon production mix so as to align the manufacturing process with semiconductor market demand.

"Becoming leaner will allow Butte to better compete in the semiconductor market, particularly at the current time, where excessive polysilicon inventories have not yet cleared,” CEO Tore Torvund said. He said that after inventories deplete, semiconductor polysilicon demand will rise and the Butte facility will be “well-positioned in the future."

REC Silicon in July reported positive earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 1.3 million (EUR 1.1m) for the second quarter of 2017 but saw sales drop to USD 61.4 million due to lower polysilicon sales volumes.

(USD 1.0 = EUR 0.838)

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