AE Polysilicon Closing Fairless Hills...

AE Polysilicon Closing Fairless Hills Plant?

Posted in the Fairless Hills Forum

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Tony B

Paramus, NJ

#1 May 3, 2012
My buddy said he was laid off and everything there closed. Any news on this? They took years to start production and now this? Seems odd.
Tony B

Paramus, NJ

#2 May 3, 2012
Looks like Parent company Motech missed earnings.
That could be behind the Layoffs in Fairless Hills.
Not mention it was Democrat Patrick Murphys pet project and he was voted out of office and replaced by a Republican.

""Despite continuous reports about adept efforts from Taiwanese top tier cell makers, Q1 has been a big disappointment when measured against Q4 sales, and particularly when compared to the first quarter of 2011

Despite continuous reports about adept efforts from Taiwanese top tier cell makers, Q1 has been a big disappointment when measured against Q4 sales, and particularly when compared to the first quarter of 2011. First quarter revenue had seen a minimal increase for Motech and Neo Solar Power, while Gintech, the third largest cell maker of 2011, was unable to overcome Q4 revenue.""
Tony B

Paramus, NJ

#3 May 3, 2012
As per Google. Seems many Asian solar companies are aggressively writing down assets to improve their balance sheet and closing plants due to high operational costs. Mostly a result of earning growth not meeting expectations. I heard on CNBC China is slowing. European recession is not helping either, despite the fact everyone wants to ignore Europe.
Justa Thought

Newtown, PA

#4 May 20, 2012
WOW, so glad to finally hear the placed failed. Awful management, terrible leader. Never did I work for such a place so little value was placed on American workers. Proud to be American and glad the place is gone. The state of PA should be ashamed it gave money to that place and TG GE new better then to give a handout. So sad for some of the displaced workers then again most of them did nothing.
Good

Levittown, PA

#6 Jun 1, 2012
Good
Good

Levittown, PA

#7 Jun 1, 2012
Tony B wrote:
As per Google. Seems many Asian solar companies are aggressively writing down assets to improve their balance sheet and closing plants due to high operational costs. Mostly a result of earning growth not meeting expectations. I heard on CNBC China is slowing. European recession is not helping either, despite the fact everyone wants to ignore Europe.
Not knowing what he was doing or how to repesct people finally caught up with that J. O. owner.
Good

United States

#8 Jun 1, 2012
Tony B wrote:
As per Google. Seems many Asian solar companies are aggressively writing down assets to improve their balance sheet and closing plants due to high operational costs. Mostly a result of earning growth not meeting expectations. I heard on CNBC China is slowing. European recession is not helping either, despite the fact everyone wants to ignore Europe.
Tony B. De (kiss managements ass) Cheeko? you suck ass, maybe now you can retire early like you wanted, maybe without money. Cash in your stock.

This strategy may not work somewhere else now in these times when you need to know what you are doing and actually perform.
Solar

Feasterville Trevose, PA

#9 Jun 4, 2012
By Mark Osborne - 29 May 2012, 15:15
In News, Fab & Facilities, Materials, Finance

Motech pulls the plug on AE Polysilicon operations
Proud at AEP

The Plains, VA

#10 Jun 26, 2012
Great company to work for with great owner who treated employees as family, sad to see untrue statements written about AEP.
some dude

Media, PA

#12 Jun 28, 2012
Justa Thought wrote:
WOW, so glad to finally hear the placed failed. Awful management, terrible leader. Never did I work for such a place so little value was placed on American workers. Proud to be American and glad the place is gone. The state of PA should be ashamed it gave money to that place and TG GE new better then to give a handout. So sad for some of the displaced workers then again most of them did nothing.
I worked my ass off there. Management consistently made poor decisions and we can see the result.
Solar Panel Glut

Southampton, PA

#13 Jun 28, 2012
Abound Solar to Suspend Operations, Will Seek Bankruptcy

By Christopher Martin and Jim Snyder on June 28, 2012

Abound Solar Inc., a U.S. solar manufacturer that was awarded a $400 million U.S. loan guarantee, will suspend operations and file for bankruptcy because its panels were too expensive to compete.

Abound borrowed about $70 million against the guarantee, the Loveland, Colorado-based company said today in a statement. It plans to file for bankruptcy protection in Wilmington, Delaware, next week.

The failure will follow that of Solyndra LLC, which shut down in August after receiving a $535 million loan guarantee from the same U.S. Energy Department program. Abound stopped production in February to focus on reducing costs after a global oversupply and increasing competition from China drove down the price of solar panels by half last year.

“Aggressive pricing actions from Chinese solar-panel companies have made it very difficult for an early stage startup company like Abound to scale in current market conditions,” the company said in the statement.

U.S. taxpayers may lose $40 million to $60 million on the loan after Abound’s assets are sold and the bankruptcy proceeding closes, Damien LaVera, an Energy Department spokesman, said in a statement today.

“When the floor fell out on the price of solar panels, Abound’s product was no longer cost competitive,” LaVera said.

Bankruptcy Warning

Cliff Stearns, the chairman of the House Energy and Commerce Committee’s oversight panel that has held several hearings and collected thousands of administration e-mails relating to Solyndra’s guarantee, said he didn’t think Abound’s closure warranted its own investigation.

“We know why they went bankrupt. We warned them they would go bankrupt,” Stearns, a Florida Republican, told reporters today.“The larger question is why the administration was pursuing a green-energy policy in which companies are going bankrupt and wasting taxpayer money.”

Stearns said his panel would probably hold a hearing on the guarantee program. Darrell Issa, chairman of the House Committee on Oversight and Government Reform, continues to investigate the loan-guarantee program and still hasn’t received some requested documents from the Energy Department, said Jeffrey Solsby, a spokesman for Issa.
Solar Panel Glut

Southampton, PA

#14 Jun 30, 2012
Looks like China undercut the industry and bankrupted everyone. Sort of like HD TV's. The solar industry overbuilt and expected high margins. Not taking into account the margins would shrink as it became a commodity industry.
Solar Panel Glut

Southampton, PA

#15 Jul 1, 2012
Instead of building solar panels with the intent to sell to individual people to mount on their home for $100,000 a pop,(Which would take about 100 years or so recoup your investment) Why not just build Solar Power plants to power the entire grid of a city? Oh, wait,,,you would not make enough money. It's like selling everyone their own power plant, instead of just building one big one. Same concept as buying a $50,000 hybrid car.
If you drive 15,000 miles a year and get 25 mpg at $3.70 gas,you spend $2,220 dollars a year in gas.$50,000 divided by $2,220 = 22.5 years to recoup your money and see a savings.(Actually longer because the savings would be only be seen at the mpg above what your old car got per gallon) Assuming the hybrid will last that long, it will be a classic car by then. Makes you think. PT Barnum said theres a sucker born every minute.
-

Softbank to Build Japan’s Biggest Solar Plant on Incentives

By Yoshiaki Nohara and Chisaki Watanabe - Jul 1, 2012 1:11 AM ET
Jill

Newark, DE

#18 Jul 3, 2012
to bad.
Solar Panel Glut

Southampton, PA

#19 Jul 3, 2012
News says AE was a money loser for Motech due to lack of volume output. The problem is a Solar Panel Glut with no buyers. China is shutting down it's factories. If AE had ramped up volume, the same outcome would of occured. Kinda like everyone scurrying to build 300,000 Hybrid cars that go for $55,000 each to sell to Ethiopia because their bicyles got flat tires. Whoa the Solar Panel glut. The brains of the world extrapolated that everyone would go solo in the Foreclosure Decade. They sold the drama and everyone made money. Thats capitalism 101.
Starbucks

Seattle, WA

#20 Jul 4, 2012
Does this mean everyone that worked there is not going to be a millionaire? Everyone was supposed to cash out on stock and retire millionaires. Four years before the plant even opened up. Everyone would talk about how they would spend their millions. Is there a golden parachute plan?
Starbucks

Seattle, WA

#21 Jul 4, 2012
If AE Polysilicon was a subsidiary of Motech how would the employees of AE get stock options in Motech or pre-public shares of AE with the intent of taking the company public? In other words, why would all the drunk employees of AE that bragged about being potential millionaires down the road make their money? Because Motech stock would have to handsomely appreciate to make millions off it in stock options and if Motech owned AE why would they give the employee loads of stock options when they could keep it for themselves and upper management? Any light on this issue. All you every heard was a drunk AE employee brag how they where gonna make millions in stock options and buy an island somewhere.
Proud at AEP

The Plains, VA

#22 Jul 5, 2012
Starbucks wrote:
If AE Polysilicon was a subsidiary of Motech how would the employees of AE get stock options in Motech or pre-public shares of AE with the intent of taking the company public? In other words, why would all the drunk employees of AE that bragged about being potential millionaires down the road make their money? Because Motech stock would have to handsomely appreciate to make millions off it in stock options and if Motech owned AE why would they give the employee loads of stock options when they could keep it for themselves and upper management? Any light on this issue. All you every heard was a drunk AE employee brag how they where gonna make millions in stock options and buy an island somewhere.
Ben K. It is odd that you keep talking about the drunk employees at AEP when the only DRUNKS were you and your boys from WA. Good to see you now work at a Starbucks thats more your Speed
Solar Panel Glut

Southampton, PA

#23 Jul 5, 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.
Solar Panel Glut

Southampton, PA

#24 Jul 5, 2012
It's become a commodity industry. You saw it in ethernet bandwith, routers and cell phone. We have a housing glut now.
-----

The material’s average spot price was $23.20 a kilogram compared with $22.90 a week earlier, a survey by the London- based research group showed today. Polysilicon tumbled 62 percent in the past year on oversupply issues and is down from a February 2008 peak of $475.

“I don’t see any reason for prices to trend upward,” Hosseini said.“Until companies start going bankrupt and capacity coming off line, we’re not going to see a healthy solar industry.”

“The polysilicon prices are now covering cash costs at a handful of top-tier producers, which means they are below production costs for the remaining ones,” Song said yesterday.“While it limits expansion and new entrances, the glut may continue until 2014 or 2015.”

Song estimated costs at top producers would range from $25 per kilogram to $30. Separately, he said production costs at companies with an annual capacity of 10,000 tons such as Hanwha’s would be at least 30 percent less than at lines with a 3,000-ton capacity, which most producers have.

‘Glut Concern’

“When we first studied whether to build a plant or buy, the material was in shortage and no one offered a long-term supply,” Song said. The construction plan, meanwhile,“is on track as planned regardless of the glut concern because it’s important to have flexibility in the next negotiations on whether to build or buy.”

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