REC Silicon revs up for May announcement
REC Silicon revs up for May announcement
CEO: Selection of Moses Lake for $600 million expansion 'probable'
MOSES LAKE — Residents have to wait a tad longer to find out if an expansion projected to value $600 million will locate here.
The Norwegian parent company of REC Silicon was originally going to announce whether it has decided to locate the expansion at its plant in Moses Lake, at its plant in Butte, Mont., or overseas sometime this month, but now the decision is expected to come around May 23.
"The board of REC does not need to make the decision until then, so they want to use the time as well as they can," said REC Silicon CEO Goran Bye. "There are a few things that need to fall into place yet before we can go to them with an investment proposal."
That includes the lack of a long-term electricity contract in the area. Bye said the company likes the service with the Grant County Public Utility District and has had a good relationship with them for 20 years, but it's "pretty hard to put investment proposals in place for hard-nosed businesspeople when you don't have a long-term contract for your major raw material."
Bye said REC Silicon and the PUD are in discussions, and said he thinks there will be a solution, "but I'm not entirely convinced yet. We're not there now."
Bye said he thinks it is "overall probable" that the expansion will be in Moses Lake. There are no political issues outstanding, he said, just practical ones.
"I think when we have crossed the 't's, dotted the last 'i's and see what we do with the contract issues with electricity … I think there's a more practical approach that's going into the decision than a political decision," he said.
While that issue is resolved, Bye said, he and REC Silicon senior vice president Tor Hartmann are working under the assumption the expansion will be in Moses Lake.
While not officially decided, the expansion has a scope of work valued at close to $600 million, with contingencies that are still being examined, Bye said, and would triple the capacity of the Moses Lake plant.
Hartmann estimated that 80 to 90 new jobs would come in with the expansion, with a broad range of pay, averaging around $50,000 per year.
"It's a good set of skills that we're bringing into the area," Hartmann said. "There's engineers, there's instrument and electrical technicians, machinists, mechanics, chemical operators — a good mix of good solid jobs."
Bye added that the hope is with Yahoo and MSN Microsoft set to locate in Quincy, there would be jobs available for the spouses of people coming into the area.
"These days, people are used to two careers and two sets of salaries, so maybe we can help the other companies by employing one and they employ the other spouse, or whatever," Bye said. "We'll see."
Hartmann thought the city of Moses Lake and the state of Washington have been very proactive within the limitations enforced upon them by some constitutional laws. REC Silicon has met several times with Gov. Chris Gregoire, who has called Norway to express her interest in seeing the expansion located in Moses Lake and written a letter of support. The company has also met with the city government, Hartmann said, with discussions including a recent proposal to install a water treatment facility that would service the entire Wheeler Corridor.
Hartmann said his and other companies need soft water; the water coming out of wells is extremely hard, containing a lot of calcium and silicates.
"All the individual companies are having to treat that water, and it's very cost ineffective and produces a lot more wastewater than is really necessary," Hartmann said. "This is an opportunity to upgrade the entire corridor."
REC Silicon has also received grants for training and from the department of community trade and economic development's Community Economic Revitalization Board from the state.
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