Chief: 'Vibrant atmosphere' at Solar Grade Silicon

Plant expansion decision expected before year's end

MOSES LAKE— While a decision about a plant expansion looms, the Moses Lake Solar Grade Silicon plant is expecting growth, according to its president and chief operating officer.

Earlier this year, Renewable Energy Corporation (REC) AS signed a letter of intent to buy a 75 percent interest in Advanced Silicon Materials LLC (ASiMI) from Komatsu Ltd. The companies will do business as "REC Silicon Division," with "ASiMI" as its trade mark for silicon gases, according to an Oct. 11 REC press release.

The acquisition of the ASiMI plant was complete in July, said Tor Hartmann, president of Solar Grade Silicon (SGS), ASiMI's joint venture with REC. At that point, the company began consolidating its two polysilicon operating plants, located in Moses Lake and in Butte, Mont.

"Basically, what we're trying to achieve is one company with two plants," Hartmann said.

In September, it was announced that about 25 jobs — including some management and operator positions —would be cut from each plant as part of the consolidation.

SGS is considering an expansion estimated at $300 million to its Moses Lake facility, but is also looking at spending those expansion dollars in five other Northwest locations, including Butte.

The expansion will take place at one site, Hartmann said.

"We're looking very closely at Moses Lake, but we haven't made a final decision yet," he said. "But that decision should be coming before the end of the year."

The importance of power rates

Power rates are a major consideration in the location of the facility, Hartmann said.

Hartmann spoke about the Grant County Public Utility District industrial rates in August. SGS is currently the top industrial user of electricity in the Grant County Public Utility District at 45 to 50 megawatts. With the future expansion, they would approximately double their power load to between 90 and 100 megawatts.

Hartmann said he believes the PUD's recent approval of new industrial rates was a good indication for the future, adding that other conversations have turned out positively.

"I think that we are getting good consideration," he said. "There are some issues in the future that we still need to resolve, and that's not only with Solar Grade Silicon. That's with all users of PUD power."

Hartmann said that SGS has tried to be a good industry in, and support for, the community.

"We've been working with the PUD and other organizations on the basis of trying to be good neighbors, and get in return reasonable treatment, particularly with the PUD," he said. "We haven't ever asked for any favoritism, but we have asked to be considered fairly."

Hartmann said he thinks there's potential in Moses Lake for future solar-type companies. SGS would provide an anchor as a large manufacturing firm, he said.

'We've certainly got the feeling that the expansion would be welcome'

In September, Grant County Economic Development Council executive director Terry Brewer stressed that community members and business leaders should write letters in support of the expansion.

At the time, Brewer said he doesn't believe it's in the best interest of the community to lose the expansion, and ultimately run the risk of more lay-offs because the Moses Lake plant is the oldest plant and has the oldest technology. The expansion would add 70 new jobs.

"If in fact it comes to a point when that corporation needs to do a lay-off, I think the oldest plant will go first," Brewer said. "If we get the new technology here, it gives our plant longevity."

Hartmann declined to comment on what kind of response the company had received before Brewer's public assertions, but said the company had heard from the community.

"We've received letters from the mayor and several businesses in the town," Hartmann said, noting that the company has also worked with several state representatives and Gov. Christine Gregoire. "They've all shown their support to bringing (the expansion) to Moses Lake. We've certainly got the feeling that the expansion would be welcome here."

'It's an exciting place to be'

Overall, Hartmann said he believes REC Silicon has a good future with its location in a high-growth market.

"We may have to make some adjustments in the way we do our business, but we know what those adjustments are," he said. "We have a proven track record of running a good operation here in Moses Lake, and we turned this facility into one that's profitable, has a good future."

REC Silicon is also developing new technologies to manufacture its products in a more cost-competitive fashion, Hartmann said.

"There are a lot of activities going on right now," he said. "It's just kind of a vibrant atmosphere here. I think that people are excited, they see that we're moving forward. We have a lot of successes behind us, and we think that we can accomplish even more as we move forward. It's an exciting place to be."

The existing Moses Lake operation is secure and will continue, Hartmann said.

"I think that there's some significant advantages for an expansion going here at this site, and we're trying to sort all of that out right now," he said.