OSLO: Norway's REC Silicon, a supplier to the solar industry, has been hurt by an escalating trade dispute between the United States and China, the world's two top solar markets, reporting a second-quarter loss on Thursday.REC has two plants in the United States making polysilicon, the key ingredient in solar panels, but has been unable to export goods made there to China since 2014, when China imposed tariffs on US polysilicon imports.
It also has a joint venture in China.
On July 2, REC warned it would have to cut 100 U.S. jobs and write down the value of assets, calling on Washington and Beijing to resolve a situation that has worsened since the United States imposed new tariffs on imports of Chinese solar panels in January.
On Thursday, the Oslo-listed firm said the impairment would reach $340 million, causing a pre-tax loss of $374 million in the second quarter, compared with a profit of $60 million in the first quarter and a loss of $46 million a year ago.
"We need the US and Chinese governments to cooperate in ending the solar trade dispute ... to prevent additional job losses and to enhance the value of the solar industry in the US and China," Chief Executive Tore Torvund said.
REC Silicon's two US plants are in Butte, Montana and Moses Lake, Washington. It has expanded the factories since acquiring them in the 2000s.
At the time, REC Silicon was part of REC Group, which also made solar panels and focused on the US market.
The companies were split in 2013, with REC Silicon concentrating on becoming a supplier of polysilicon to solar-panel makers worldwide.