Norway’s REC Silicon lays off workers at U.S. plant, blaming trade war

OSLO (Reuters) – Norway’s REC Silicon (REC.OL), a supplier of silicon materials to the solar industry, said on Monday it would reduce nearly 40 percent of its workforce at one of its two plants in the United States, blaming the ongoing U.S.-China trade war.

The firm said it had not been able to sell its goods in China since 2014 as a result of the trade war between the world’s two largest economies over solar panels.

REC Silicon also said that it expected to report additional impairments when it reports its second-quarter results on July 19. Second-quarter revenue was expected at $58 million, it said, and that it had about some $42 million in cash.

“Current market conditions will negatively impact the company’s profitability and credit risk exposure,” it said.

REC Silicon did not say how much the impairments would be.

(This version of the story corrects location of plant in fifth paragraph)