June 6, 2001 – St. Peters, MO – MEMC Electronic Materials Inc. will close the 125 and 150mm polished and epitaxial wafer manufacturing line at MEMC Southwest Inc., located in Sherman, Texas. The closure will result in a reduction in workforce at the MEMC Southwest facility of more than 300 employees.
MEMC Southwest is a joint venture, 80% owned by MEMC and 20% by Texas Instruments. The company is closing the small diameter wafer line as part of its continuing efforts to focus its manufacturing facilities, to improve its cost structure, and to balance its production capabilities with the evolving market conditions.
MEMC anticipates a reduction in fixed costs and overhead of approximately $20 million on an annualized basis once the small diameter line is fully closed. The company expects that its last production on this product line will be in the 3Q01, with the final closure in the 4Q01.
“The small diameter line at MEMC Southwest primarily serves one customer, which is transitioning to MEMC’s larger diameter wafers,” said Klaus von Horde, MEMC’s CEO. “As a result, we are exiting this line and will shift the remaining small diameter production from this line to other centers equipped to handle these needs.”