Dow Corning President and CEO Stephanie Burns gives opening remarks and introduces Rick Doornbos.

As Hemlock Semiconductor President and CEO Rick Doornbos announced at a joint Dow Corning and Hemlock Semiconductor press conference today, “The rumors are true.” Doornbos’ announcement confirmed what the Mid-Michigan region hoped: Hemlock Semiconductor’s $1 billion expansion will be sited at their current facility in Hemlock, MI. The expansion, which will start immediately and continue over the next four years, will increase the company’s total annual output of polycrystalline silicon to 36,000 metric tons, a 90 percent increase. This is the second major expansion for Hemlock Semiconductor in the last 18 months; taken together, they have invested nearly $1.5 billion into Michigan’s economy.

The conference took place at Dow Corning Corporation’s J. Franklin Hyde Research and Development Center this morning, and was attended by business leaders from Bay, Midland and Saginaw counties, as well as legislative representatives and state officials. After Dow Corning President and CEO Stephanie Burns introduced the solar silicon industry and its potential for the future, she turned the podium over to Doornbos for his announcement. Their remarks were followed by the comments of Michigan Governor Jennifer Granholm, who praised the companies’ success and pointed out how it opens doors for the future economic development of the state of Michigan.

Hemlock Semiconductor President and CEO Rick Doornbos confirms the rumors: the expansion will locate at their Hemlock facility.

Doornbos cited a number of reasons that Hemlock Semiconductor’s year-long global search for a new facility culminated in the selection of their existing site: “tremendous support at the state and local level,” including attractive economic incentive packages that helped to make the Michigan site competitive; strong leadership and coordination from local leaders; and the support of their shareholders. Another important factor, Doornbos said, was the Michigan work ethic the company enjoys from the workforce at its current facility. He urged the leaders in the room to maintain and improve upon all these assets to keep Michigan and the Mid-Michigan region competitive as Hemlock Semiconductor continues its search for a second global location.

This expansion represents a powerful boost for our regional and state economy, as it is expected to generate up to 250 full-time direct jobs and an additional 250 contracted positions upon completion. In addition, almost 800 temporary local construction contractors will be needed during construction, which will begin immediately. The first phase of the new plant is expected to come online in 2010; it will be fully complete and operational by 2012.

Michigan Governor Jennifer Granholm with a piece of polycrystalline silicon.

However, in addition to the economic benefits, Hemlock Semiconductor’s expansion has broader ramifications for the economic development of the Mid-Michigan region. This is the largest investment in the history of the polycrystalline silicon industry, and it opens doors for our region to capitalize on this important source material for solar cells. Solar technology has the potential to be an important source of renewable energy in the coming decades. The energy potential from solar power cells is massive: within one hour, the sun imparts more energy to the earth than humans use globally in a year. Solar-generated electricity represents a $19 billion market, growing 35 to 40 percent per year. In fact, within the next few years, solar applications will use more polysilicon than semiconductor devices. Although solar power currently represents a negligible amount of the world’s electricity generation (less than 0.1 percent in 2005), it is projected to supply almost 30 percent by 2040. All these factors combine to combat the image solar power has developed as an alternative to the power grid, and reveal it as a powerful and growing alternative energy technology with vast potential to generate clean electricity for the growing global population.

Midland Tomorrow was proud to support this site location and the efforts that went into demonstrating Mid-Michigan’s competitiveness in the global business market. This is a significant investment in our region and in the state of Michigan; based in an industry with vast potential, this is one of the cornerstones of our economic future.

A standing-room-only crowd extended far beyond the seats to fill the lobby.

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