REC Silicon closure could impact entire Columbia Basin
REC Silicon announced a facility-wide production shutdown at the Moses Lake plant that is expected to last until June.
MOSES LAKE — You might wonder why a story regarding an international trade war would appear in a small-town weekly newspaper.
That’s because some international trade wars, which are political matters, impact small-town companies like REC Silicon. It has stopped all production in Moses Lake until at least June.
“I would imagine people from the Royal Slope or all over the Basin work there,” state Senator Judy Warnick said.
In shutting down production of the silicon that is used in the manufacture of solar panels, REC blamed the ongoing trade war between China and the U.S. China has imposed a tariff that makes it impossible for REC to sell there.
“China wants its solar panel industry to use silicon produced in China,” is how Warnick understands the problem.
“In order to reduce existing inventory levels and maintain a healthy cash position, given the current market conditions in the ongoing solar trade war, the company will shut down the Silane IV unit and remaining FBR production in Moses Lake,” REC announced.
“Production is currently expected to be shut down from February until June of this year, dependent on the ongoing negotiations toward a resolution in the solar trade war and the general market development outside China.”
Warnick has heard estimates as high as 500 in lost jobs. REC suppliers will be affected, she said.
“REC Silicon is a major employer in our community, and news of their closure is going to have a significant impact, even though it may be temporary,” Warnick said. “People who rely on these family-wage jobs will be deeply affected.”
“Unfortunately, as I and other members of the Senate Ways and Means Committee were recently told, there is very little help for state employers and displaced employees to turn to in this situation,” she added. “As a result, some 500 people will lose their jobs for months as trade wars over environmental policy between the U.S. and China continue.”
Warnick said Governor Jay Inslee has pledged to continue conversations with the Chinese and U.S. governments to resolve their disputes over silicon tariffs.
“I support those efforts and will work with him for a speedy resolution to this critical situation being faced by our Moses Lake area families,” she said.