July 2, 2018 / 5:23 AM / 16 days ago

CORRECTED-BRIEF-REC Silicon lays off nearly 40 pct of US plant workers, blames China-US solar trade war

(Corrects headline)

July 2 (Reuters) - REC Silicon ASA:

* REC SILICON WILL EXECUTE A LAYOFF AFFECTING NEARLY 40% OF ITS CURRENT WORKFORCE IN MOSES LAKE, WASHINGTON ON JULY 2, 2018

* THIS LAYOFF WILL IMPACT APPROXIMATELY 100 EMPLOYEES ACROSS COMPANY AND IS A DIRECT RESULT OF ON-GOING SOLAR TRADE DISPUTE BETWEEN CHINA AND UNITED STATES

* DUE TO THIS ON-GOING TRADE DISPUTE, COMPANY HAS NOT BEEN ABLE TO ACCESS ITS CRITICAL MARKET IN CHINA SINCE 2014. THIS HAS CAUSED SUCCESSIVE REDUCTIONS IN REC SILICON’S OPERATIONS IN UNITED STATES.

* REC SILICON HAS DECIDED TO REDUCE ITS PRODUCTION AT MOSES LAKE TO APPROXIMATELY 25% OF TOTAL PRODUCTION CAPACITY

* ACTIONS TAKEN TODAY WILL HELP MAINTAIN COMPANY’S LIQUIDITY, ITS ABILITY TO MEET FINANCIAL OBLIGATIONS, AND MAINTAIN REC SILICON’S CAPABILITY TO RESUME MANUFACTURING OPERATIONS WHEN ACCESS TO CHINA’S POLYSILICON MARKETS IS RESTORED

* REC SILICON CURRENTLY HAS APPROXIMATELY $42 MILLION IN CASH DEPOSITS AND EXPECTS TO REPORT APPROXIMATELY $58 MILLION IN REVENUES FOR Q2 OF 2018

* Q2 FBR PRODUCTION IS EXPECTED TO BE 2,040 MT OR 240 MT BELOW GUIDANCE ON APRIL 26, 2018

* CURRENT MARKET CONDITIONS WILL NEGATIVELY IMPACT COMPANY’S PROFITABILITY AND CREDIT RISK EXPOSURE

* REC SILICON EXPECTS TO RECOGNIZE ADDITIONAL IMPAIRMENTS TO INVENTORIES, ACCOUNTS RECEIVABLE, AND FIXED ASSETS IN ITS Q2 EARNINGS RELEASE ON JULY 19, 2018

* REC SILICON WILL HOST A CONFERENCE-CALL TO ANSWER QUESTIONS FROM INVESTORS, ANALYSTS AND OTHER INTERESTED PARTIES ON 2 JULY AT 8:00 AM CET Source text for Eikon: Further company coverage: (Reporting by Gwladys Fouche)

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