Hemlock lays off workers and reduces polysilicon production

The main polysilicon manufacturer Hemlock Semiconductor has cited unresolved trade disputes, especially trade disputes with China, as a key factor behind its decision to lay off about 400 people, reduce polysilicon production, and delay the increase of production at its new plant in Tennessee.

Andrew Tometich, president of Hemlock Semiconductor, said: “The ability to make Hemlock Semiconductor pass through the polysilicon and solar industry fluctuations is a difficult but necessary decision. The unresolved trade dispute between the United States, China and Europe is Hemlock. Semiconductor's main reason for taking the above actions is that due to the piracy of polysilicon exported from the United States to China, Chinese orders have been substantially reduced, and China is one of the largest markets for our products."

China is currently investigating the complaint filed by its polysilicon producers that foreign suppliers sold high-purity materials at below-cost prices, which led to a sharp drop in prices and 90% of Chinese manufacturers stopped production.

However, recent reports have stressed that since 2008, large-scale capacity expansion, including more than one hundred new manufacturers, mainly in China, has entered this market, leading to serious excess capacity in the polysilicon industry.

Major manufacturers, such as Hemlock and Wacker, also initiated equipment upgrades to produce and meet growing demand, and began investing in new major equipment a few years ago.

Hemlock said that the layoffs will affect 300 employees at the Tennessee plant, the factory has not yet been commissioned or started production, and Michigan's main production base will lose 100 jobs.

The company plans to reduce production but has not provided a specific quantity. Hemlock has set a goal of increasing production by about 46,000 MT per year, starting from 12300MT in 2008. The new plant was planned to start production in 2013.

Hemlock said that the Tennessee factory has actually been shelved pending market conditions and the settlement of trade disputes.

Tomdick added: “Hemlock Semiconductor has been operating for 52 years and is still the leader of the industry. As one of the leaders of this industry, we will try to pass this stage with extreme volatility and uncertainty, and Will become a long-term viable company."