Rec gave after – DN.no

Rec Silicon and its shareholders have been hard at Oslo Børs in recent years. The supercritical silicon manufacturer for solar cells and panels has been banned from selling to China's largest market, following trade disputes between China and the United States. The controversy has been ongoing since 2014. The difficulties have brought down Rec's stock price from a peak of 4.96 crowns to the current level of about 84 degrees, and take off from billions of stocks.

Thursday, however, was a small bright spot for investors who held out as shareholders Rec. Despite considerable difficulties and the elimination of book values ​​of 2.8 billion Norwegian kroner, the share price increased by a few percent on Oslo Børs. However, as the stock market approached, the stock fell and ended with a drop of nearly 2.5%. Since the New Year, the share is down 42%.

Rec Silicon has already announced in early July to have laid off nearly 40% of its employees in the prestigious facilities of Moses Lake in Washington, USA. and we can do it from our production sites in the United States. We simply need fair access to the Chinese market, the company wrote.

Prices fell

In addition to the trade dispute, silicon prices also fell in the second quarter.

– Rec believes prices are at current levels By the end of May, market visibility was declining and inventories were starting to increase as demand for silicon increased in China, writes Rec.

China also reduced its support for the sun during the first week of June. Installations

– This created uncertainty in the global market, causing a sharp drop in silicon demand. To curb inventory growth, manufacturers have rapidly reduced production along the value chain. According to the report, the drop in demand has lowered prices for solar-grade silicon.

Rec Silicon had a capital of $ 113 million at the end of June, or $ 1.1 billion, or 34%. That's down 61 percent and $ 511 million just three months earlier. At the same time, the debt has increased from $ 10 million to $ 92 million.

– The company's current liquidity and cost reductions are deemed sufficient to reach $ 1.5 million in September and the cash requirements for the next twelve months However, the company warns that if lenders of the # 39; One of the company's loans require that the loan be covered as they were entitled to February 2016 or that a tax case with the Norwegian Central Tax Office would give a bad result to the company, the liquidity risk l & # 39; 39, increase of the company.

REC director Tore Torvund told the TDN Direct news agency that the company was not planning to raise more money.

– We will not be asking for more money from shareholders and we will not take out any more loans. We already have too many loans, he says. (Terms)