RW Silicium

History

2023: The threat of bankruptcy due to the country's rejection of energy from Russia

At the end of November 2023, it became known that RW Silicon - the last remaining silicon manufacturer in Germany - faces bankruptcy. The reason is the sharp rise in electricity prices, which was provoked by the country's refusal to energy from Russia against the background of the current geopolitical situation.

It is noted that rising prices for industrial electricity in Germany have made the energy-intensive silicon production process unprofitable. Because of this, RW Silicon by the end of November 2023 stopped three of the four arc steelmaking furnaces at its plant in Pocking (Bavaria) near the Austrian border. If the situation does not change, the company may completely stop producing products by March 2024. It is possible that in this regard, RW Silicon will be forced to file for bankruptcy with the supervisory authorities.

RW Silicon faces bankruptcy

As noted by the BNN Breaking resource, the closure of the RW Silicon enterprise could have far-reaching consequences for Germany. The company annually produces over 30 thousand tons of silicon, which is widely used in the manufacture of various microchips, solar panels and other high-tech products. If RW Silicon curtails operations, silicon shortages will have to be offset by purchases from overseas suppliers. And this will increase dependence on imported raw materials supplied, in particular, from China. In addition, the closure of the RW Silicon plant will result in approximately 120 job cuts.

The situation is aggravated by the decline in silicon prices (as of 2023). This negatively affects the revenue of the RW Silicon enterprise, which already found itself in a difficult financial situation. To continue the company's activities, it is necessary to solve the problem of the high cost of electricity.^[1]

Notes