ASiMI joins forces with Norway firm

Venture will prevent closure of Moses Lake, Wash., operation
A joint venture agreement between Advanced Silicon Materials Inc., and a compa ny in Norway could mean employment for workers at the Moses
Lake, Wash., plant will continue in the polysili con industry.

By Leslie McCartney Montana Standard

ASiMI announced this week that it and a company called Renewable Energy Corp. of Norway have signed a letter of intent to establish a
joint-venture at the Moses Lake plant to produce polysil icon for the solar cell indus try. That type of polysilicon is cheaper to make and buy, and the
requirements for the product are not as stringent as the type manufactured for the semiconductor industry, such as that made in Butte.
“ We’re really excited and think this is a good thing for the Moses Lake plant and the people in Moses Lake,” said Mike Kerschen, president of the
company. He added that by agreeing to the joint pro ject, Renewable Energy buys the equipment and facility, and gains the skills of the ASiMI work
force in Moses Lake.
At one time, Moses Lake was the center of the compa ny’s polysilicon production with more than 350 employ ees. By contrast, the Butte location —
much newer and cost-effective — now has about 175 employees.
The joint venture also pre vents a permanent closure of the Moses Lake plant, since ASiMI has moved all of its high-grade silicon and silane gas
production to Butte.
Officials added that Renewable Energy Corp. has worked for a long time using polycrystalline silicon for solar applications. ASiMI has studied the
market as well, but is more interested in con tinuing to make the higher grade used by the semicon ductor industry.
“ The joint venture should become a major milestone to reduce future shortage of sili con for the solar industry. It will also offer an opportunity for
the solar industry to grow with minimal impacts of semi conductor market conditions and lead to stabilization of sili con raw material prices,” said
Reidar Langmo, president of REC, in a news release .
That company is the main shareholder in ScanWafer ASA, one of the major inde pendent producers of silicon wafers for the photovoltaic industry.
Under the initial terms of the agreement, ASiMI’s major contribution will be the transfer of the Moses Lake facility. Renewable Energy will supply
technology, financing and working capi tal.
“ The joint venture gives us a way to participate (in the solar cell application),” said Kerschen.
He said the technology to be pursued on a granular process could have “ great value to ASiMI” in the future.
Negotiation surrounding cost reductions, definitive agreements and other condi tions, including regulatory approvals, will continue for the next few
months. A final agreement is expected by summer.
Kerschen said that the lat est announcement will have a minimal impact on Butte operations, the company’s sole production site. However,
cooperation will continue between the two sites as part of the joint ven ture agreement.
The polysilicon industry is beginning to recover from the devastating twin effects of a recession and Sept. 11. Forecasters predict that demand for
the product in the latter part of this year should match demand in the first quarter of 2001.
That means that existing operation reactors will be fully used by the end of this year. The company intends to complete Phase 2B as the market
allows. Phase 2B will bring on line additional reac tors. Reactors are what “ grow” the silicon.
“ We fully intend to finish it,” Kerschen said.
— Reporter Leslie McCartney may be reached at leslie.mccart ney(at)(at)mtstandard.com.

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