Wacker Chemie Shares Fall on Report of Potential Tennessee Polysilicon Plant Closure

Shares of Wacker Chemie (ETR: WCH) fell as much as 3.4% after a Reuters report indicated the German chemical company is considering the closure of its major polysilicon production facility in Charleston, Tennessee.

Details of the Potential Closure

According to sources cited by Reuters, the company may decide on the plant's future in the coming weeks. The facility, which employs approximately 600 workers, has reportedly lost its two remaining customers as a direct result of trade measures enacted by the Trump administration intended to bolster the purchase of American-made polysilicon.

The Charleston plant is a key producer of high-purity polysilicon, a critical material used in the manufacturing of both semiconductors and solar panels. Its potential closure represents a significant development for a facility previously seen as integral to U.S. efforts to secure domestic supply chains for critical technologies.

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Policy Impact and Company Response

The situation follows a White House proclamation last month aimed at protecting the domestic semiconductor industry. However, Wacker Chemie noted that the policy may not be having its intended effect for all producers.

In a statement cited by the report, the company said the proclamation "does not, as it reads now, effectively support the use of U.S. made polysilicon." Wacker Chemie confirmed it is in "active discussions with the administration" to find ways to achieve the policy's goals. The final decision on the plant's future is expected shortly.