AEP production suspension is temporary until market clears,says Motech chairman Simon Tsuo Nuying Huang,Taipei;Jackie Chang,DIGITIMES[Wednesday 30 May 2012]Motech announced on May 29 plans to suspend production at its polysilicon subsidiary AE Polysilicon(AEP).According to Simon Tsuo,chairman of Motech,AEP has yet to achieve economies of scale.Motech plans to halt production and reduce expenditure.AEP owns many patents,hence the firm may sell some equipment and focus on technological developments in the future.
Spot price of polysilicon has been dropping to US$20-22/kg due to weak demand and oversupply.
AEP currently has annual production of 1,800 tons.However,the firm continues to be in the process of ramp-up,and hence has been facing difficulties to reach economies of scale.Tsuo noted that if the firm cannot produce up to 10,000 tons of product,with the current price of polysilicon,it does not matter which technology the firm uses,losses are likely to occur.
Motech is the largest shareholder of AEP,while France-based petroleum company Total the second-largest shareholder.
