ASiMI Announces Joint Venture for Solar Grade Polycrystalline
Moses Lake, WA (March 18, 2002) - Advanced Silicon Materials LLC
(ASiMI), a United States subsidiary of Komatsu Ltd. and a manufacturer
polycrystalline silicon, and Renewable Energy Corporation (REC)
have recently signed a letter of intent to establish a joint-venture
Under the proposed arrangement, ASiMI will convert its Moses Lake
into a plant dedicated to produce polycrystalline silicon for solar
applications. After finalizing specific conditions, the two companies
conclude a definitive agreement around the summer of this year.
For the establishment of the joint venture, ASiMIs major
be the transfer of the Moses Lake Plant consisting of its silane
gas plant and
related facilities, while RECs major contribution will be
to provide financing
for granular polycrystalline silicon technology development and
capital. The joint venture will start with 50:50 equity participation.
establishment of the joint venture is subject to the achievement
reductions, the negotiation of definitive agreements, and various
conditions, including obtaining any applicable regulatory approvals.
In light of belated recovery in demand for polycrystalline silicon
for use in
semiconductors against the backdrop of depressed market conditions
semiconductors worldwide, ASiMI has discontinued production at the
Moses Lake Plant. As a result, an impairment loss will be recorded
at the end
of the current fiscal year. ASiMI has studied the possibility of
the Moses Lake Plant into a plant dedicated to produce polycrystalline
silicon for solar applications. REC, on the other hand, has for
a long time
worked to develop a stable supply network of polycrystalline silicon
solar applications, whose demand has demonstrated outstanding growth
the last few years with a bright prospect for future growth.
Mr. Reidar Langmo, President of REC, explained, "The joint
become a major milestone to reduce future shortage of silicon for
industry. It will also offer an opportunity for the solar industry
to grow with
minimal impacts of semiconductor market conditions and lead to stabilization
of silicon raw material prices."
Mr. Michael W. Kerschen, President of ASiMI, commented, "The
company should be able to reopen the Moses Lake Plant, and that
important for the local community."
Outline of Renewable Energy Corporation AS
Head Office: Oslo, Norway
Line of Business: REC is a Norwegian based holding company active
entire value chain of solar energy. REC is the main shareholder
ASA, one of the major independent producers of silicon wafers for
Outline of Advanced Silicon Materials LLC
Head Office: Moses Lake, WA 98837, U.S.A.
Line of Business: ASiMI is a leading producer of ultra-high purity
polycrystalline silicon, and the world's largest manufacturer and
silane gas. Both products are integrated using a unique core technology
create a base material for silicon wafers and devices produced in
ASiMI Media Relations: Mike Kerschen, (509) 765-2106