Hi
I see you wrote an article about REC today.
Therefore, I would like to send you some information and I hope that you will be able to find out the real truth for us, shareholders in REC and the market in general, as REC is a listed company in Norway.
REC spent over $5-$600 million to restart its ML department, hiring several hundred new employees, and spending a lot of money on training and large-scale production, only to shut it all down before it even started .
Because that one Chinese test shows that the quality is not good enough. This is unrealistic. So yes, it stinks a lot and all indications are that this is not the truth in this matter. Why did the customer, Q-Cells, who again controls both sides of the table through Hanwha, choose to send REC raw materials to China for testing?
For some reason the customer did not want to tell the market and REC which country they had sent the product to for testing, but after 5-7 weeks of waiting an announcement comes on the stock exchange that REC’s products have been held back at the Chinese customs. We know that REC had to close the ML department in 2019 due to the Chinese tariff on REC products.
Why would the testing company in China, which is under their regime, want REC’s product to be approved if they don’t want US companies in general to go bankrupt? And in the stock exchange announcement on September 13, REC confirms that the quality is accepted by both the customer and REC, but that it is only a formality to test the product.
The test results from the Chinese company will be released on December 17 and of course we already know the answer in advance, where they believe that the purity is not terrible. In the same announcement, REC management says that sometimes more testing is needed to get it approved. That is why REC used this long waiting time to work on quality and prepare a new batch for testing.
But then a few days later the message comes that everyone is shocked that they cannot continue with it because the customer who is Hanhwa no longer wants to wait. It’s a shame for all those who wasted their time sending the goods to China, who spent more than three months for a false result.
That’s why we, small savers who are left with more than 90% losses, want you to focus on this issue so that someone intervenes from the authorities in the US.
Hanwha is looking for something in REC, maybe they will take it down completely, which they managed to do and came up with some embarrassing bids. We want fair and equal treatment of all shareholders.
Kind regards
Armando
Is REC Silicon held hostage by shareholder Hanwha? After investing countless millions to upgrade its fluidized bed reactors (#FBR technology) and granular #polysilicon aftertreatment systems in Moses Lake, Washington (USA), REC Silicon suddenly announced on December 30 that it would cease its polysilicon production. The decision comes after an initial qualification test for REC Silicon’s granular material in #China failed in December. However, the company’s argument that its sole polysilicon customer Qcells USA Corp., a subsidiary of Hanwha Group, “can no longer wait for product delivery” is strange considering the start of production of #ingots and #wafers on Qcells has been postponed until mid-2025. And there are even more rudenesses. Something smells bad in here. Retail shareholders sense a dirty play by Hanwha, which owns a 33% stake in REC Silicon, to take control of the company at their expense – see Armando Tyria’s comments on LinkedIn: https://lnkd.in/em8br54D
REC Silicon – Qualification Test Results
17/12/2024, 19:10:00
Regulatory
Moses Lake, Washington, USA, December 17, 2024: REC Silicon ASA (“REC Silicon” or the “Company”) has now received the results of the qualification test for its ultra-high purity polysilicon from the recently restarted silane-based high purity granule production facility in Moses Lake , Washington.
The company was informed yesterday by its customer of the results of the qualification test completed earlier this month through a third-party testing partner. Unfortunately, due to the impurity issues in the submitted qualification material, the customer deemed the test unsuccessful. This was due to lower than expected crystallization levels and the ingot yield observed during the test runs, which the customer did not consider acceptable for their production process at this stage. The company is in discussions with its customer to determine the feasibility of a new test, contingent on the company making improvements to the production process in Moses Lake. The timing and likelihood that the necessary improvements will be achieved are currently uncertain.
As a result of the failed qualification test, REC Silicon is reviewing several strategic options. This may include additional operational adjustments, contractual renegotiations and other mitigation measures.
REC Silicon continues to work on additional financing to ensure the company’s financial flexibility. The Company will provide additional operational and financial details as such information becomes available.
REC Silicon – Update on the first shipment of ultra-high purity polysilicon
13/09/2024, 16:28:00
Regulatory
Moses Lake, Washington, USA – September 13, 2024: REC Silicon ASA (“REC Silicon” or the “Company”) provides an operational update on the first shipment of ultra-high purity polysilicon from the recently restarted silane-based, high-purity granulate production facility in Moses Lake, Washington.
The company is pleased to announce that following a series of changes and mitigations to our process, aimed at addressing a previously announced issue around higher than expected levels of impurities in the product, all impurities have now been reduced to levels acceptable to our customer. , and we have an agreement in principle to change a specification subject to a final review and qualification test, as is industry practice after any such change.
The plant is running well and is now producing volumes for commercial shipments. Although our production volumes are already ramping up to the necessary levels, the first commercial shipment of the product will have to be postponed until mid-October to accommodate the final qualification step our customer is undertaking.
Additionally, we can confirm that construction activities related to the restart of the Moses Lake facility have been completed, including Silane IV, and that equipment will be started as needed during the planned capacity increase.
“Reaching this point and mitigating the previous impurity problem was the result of hard work by many of the company’s dedicated staff. We will soon begin a new phase for the facility as efforts transition to continuous quality improvement to exceed market standards, ramp-up and optimization. There is still a large amount of work to be done. We will strive to reach our full commercial production capacity as quickly as possible, while maintaining our focus on product quality. We appreciate the interactions with our customer in reaching this stage. Our discussions have always focused on our common interests of our polysilicon, enabling their efforts to create a complete PV solar value chain in the US. This is demonstrably a positive outcome for both parties,” says CEO Kurt Levens.
As a leading producer of silane gases and silicon materials, REC Silicon is well positioned to benefit from the global megatrends of digitalization, energy transition and energy storage. The company has developed a strong market position in the semiconductor industry based on its operations in Butte, Montana. The successful restart of Moses Lake operations will enable REC Silicon to supply ultra-high purity polysilicon to the US solar value chain currently under construction, while the company also expects to supply silane gas in significant volumes for anode materials to a fast growing battery industry.
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