September 23 (SeeNews) - REC Silicon ASA (STO:RECO) said on Friday it does not expect to meet its previous guidance for third-quarter (Q3) polysilicon production and sales.
The reason for that are the effects of the ongoing solar trade war between the US and China and the recent decline in photovoltaic (PV) market conditions. The company said it is affected in such a way that it will run at roughly 50% of full capacity at its Moses Lake facility in Washington by October 1, 2016. Production is seen to run at lower rates until market conditions improve, it added.
The company now projects that Q3 polysilicon sales volumes, excluding fines and powders, will amount to 1,800 tonnes. July-September revenues are projected at between USD 45 million (EUR 40m) and USD 50 million, decreasing from USD 71.1 million in the prior quarter due to lower FBR (Fluidised Bed Reactor) sales volumes.
REC Silicon forecasts that Q3 total polysilicon production volumes will reach 3,900 tonnes, failing to meet the previous guidance for 4,490 tonnes. FBR production is seen at 3,300 tonnes versus a prior projection for 3,830 tonnes.
The company also mentioned that it is holding talks with its joint venture partner to defer beyond 2018 its second and third capital contributions, totalling USD 169 million, that are needed for the construction of a FBR polysilicon plant in Yulin, China. REC Silicon said it will not be able to make the contributions until the trade war is resolved.
(USD 1.0 = EUR 0.892)