Hanwha acquires large risk in REC Silicon, seeks to restart US polysilicon production
- Hanwha Solutions Corporation has accepted buy a 16.67% risk in Norwegian polysilicon manufacturer REC Silicon in a deal worth around US$ 160 million, with the South Korean chemical company looking to resume REC Silicon's 20,000 MT polysilicon factory in the United States.
Under the bargain Hanwha, which completely possesses module manufacturer Q CELLS, will buy around 70 million shares from REC silicon and also Aker Horizons, with each share being worth NOK20 (US$ 2.28), resulting in a 16.67% stake.
The transaction is expected to offer REC Silicon with sufficient funding to restart its operations at the 20,000 MT Moses Lake polysilicon center in Washington during 2023, which employs fluidised bed reactor (FBR) innovation to generate granular polysilicon, which REC Silicon said uses 90% much less power than the conventional Siemens procedure.
The restart was already most likely adhering to current policy efforts unveiled by US President Joe Biden, REC Silicon had actually formerly said.
The acquisition will additionally make it possible for more financial investment right into its 2,000 MT factory in Butte, Montana that generates semi-conductor products. Via Q CELLS, Hanwha currently runs a 1.7 GW module manufacturing facility in the United States.
"Hanwha Solutions' critical investment in REC Silicon stands for a step in the direction of developing an extremely reliable, low carbon solar worth chain in the United States," said REC Silicon in a firm media release.
REC Silicon made clear its objectives to make use of the investment to strengthen its US position using greater polysilicon production and also referenced the Solar Energy Manufacturing for America (SEMA) Act presently being thought about by United States legislators as a potential source of assistance.
"This purchase clearly demonstrates the potential to develop solar manufacturing capabilities in the United States rapidly and also successfully-- which is the key objective of the recommended SEMA Act," REC Silicon stated.
"The expected passage of the SEMA Act represents an essential element in sustaining the production of a successful and efficient solar value chain in the USA. REC Silicon is now well positioned to take advantage of this opportunity," claimed Tore Torvund, REC Silicon CEO.
Hanwha stated it intended to be stood for on REC Silicon's board of directors and also a general meeting will certainly be called so shareholders can think about the proposition, which is supported by Aker Perspective.
REC Silicon's chairman of the board, Kjell Inge Røkke, is planning to step down and Aker Horizons will certainly propose that Kristian Monsen Røkke is elected as the next chairman.