Good to see Hemlock numbers strengthening

This is the kind of financial report we’ve been looking for from Dow Corning Corp. and its subsidiary, Hemlock Semiconductor.

Now, to restore the Clarksville community’s ability to believe in the vision for Hemlock in this region, we need the company to sustain its fiscal growth, and we ultimately need a turn-around in the global marketplace to enable domestically made polycrystalline silicon to sell at a competitive price without the heavy burden of Chinese tariffs.

Dow Corning, just this week, announced third-quarter overall sales of $1.52 billion, a 7 percent increase compared to 2013. Net income also increased to $176 million, representing a 49 percent increase compared to the third quarter of 2013.

For the year, Dow Corning’s sales ($4.54 billion) and net income ($476 million) have increased 10 and 78 percent, respectively.

“Dow Corning’s industry-leading products – combined with our global manufacturing and formulation capabilities – led to record Silicones segment sales in the quarter,” said corporate Executive Vice President and Chief Financial Officer J. Donald Sheets, in prepared comments.

Silicones sales grew in the Americas, Greater China and Europe, the company announced, with growth increasing most significantly for applications in the healthcare, packaging, electronics, high-performance building and transportation industries.

“Dow Corning’s sales increased for the fourth consecutive quarter, demonstrating that our strategy, talented team and technology are well-positioned to deliver the growth expected of a specialty chemicals leader,” Sheets said.

“Our Polysilicon segment through the Hemlock Semiconductor Group continued its strong performance in 2014 as long-term contract customers continued to take shipments of material for both semiconductor and solar grade polysilicon.”

In Clarksville, Industrial Development Board Executive Director Mike Evans generally remains guarded in his comments about the status of the local Hemlock plant, but did say this Thursday to The Leaf-Chronicle in reaction to the latest financial report from the company:

“I am pleased to hear that the company’s reporting substantiates our understanding that the market is improving. Our hope is that this trend continues, because it is also our understanding that it is primarily market conditions that are keeping the Hemlock plant from moving forward.”

The polysilicon maker has been embroiled in a global trade dispute over Chinese tariffs on exported product from the U.S. As a result, the sprawling $1.2 billion Clarksville plant, which was supposed to launch production in early 2013, was instead closed down just within days of its first-phase building completion off Guthrie Highway.

Close to 300 employees, all newly trained, were instead permanently laid off before the beginning of any production. A restoration of those jobs would be welcomed in Clarksville-Montgomery County where unemployment currently stands at 6.6 percent.

We need to see the numbers match up in a way that makes the playing field for global polysilicon trade, level. Word is, we are moving in that direction.

Jimmy Settle, 245-0247

Business editor

jimmysettle@theleafchronicle.com

Twitter: @settle_leaf