
PORT OF SEATTLE COMMISSION MINUTES OF SPECIAL MEETING WITH THE Page 2 of 3
PORT OF MOSES LAKE COMMISSION IN MOSES LAKE, WASHINGTON
TUESDAY, APRIL 26, 2011
Foreign Trade Zone (FTZ), which saves REC about $4 million annually. REC’s Moses Lake facility
employs 800 people and produces the cheapest polysilicon in the world because of the low-cost
power available in Moses Lake.
CEO Yoshitani and EM Baldwin reported on their consultations to cooperate more closely on
economic development issues related to transportation infrastructure, joint marketing, Foreign
Trade Zones and exports following the February 8, 2011, meeting in Seattle. Commissioner Albro
noted that Moses Lake’s strengths include low-cost land and power, lower cost of living, strong
work ethic, good quality of life, and lack of traffic congestion. One major drawback is the lack of
scheduled air service to the Grant County International Airport.
Commissioner Bryant noted that Moses Lake relies on I-90 to transport its goods to and from
Seattle. Commissioner Jones said the Port of Moses Lake will meet with its stakeholders
regarding extending the rail connection to the POML. CEO Yoshitani suggested that the POS,
along with the Ports of Tacoma and Everett, might assist the POML in analyzing whether sending
goods by truck or rail is the best option.
The two Commissions then began to tour three manufacturing facilities at the Port of Moses Lake.
Visit to the SGL Group
Mr. Steve Swanson, Plant Manager of SGL Automotive Carbon Fibers (SGL ACF), told the two
Commissions that SGL ACF’s joint venture with Mitsubishi Rayon Company, which broke ground in
July 2010, is scheduled to open on time this summer. The SGL ACF production facility will import
precursor raw material from Mitsubishi in Japan and produce carbon fiber in Moses Lake to be
shipped to Germany. There it will be processed into lightweight carbon fiber fabric and ultimately
into carbon fiber parts and components for carbon fiber car bodies for BMW’s new Megacity
electric vehicle (the i3) and the new i8 hybrid vehicle to be manufactured by BMW in Leipzig,
Germany. SGL ACF’s plant will operate in the POML’s FTZ and will import and export raw
materials through the POS. Mr. Swanson said that the company will save “a couple of percent” by
locating the project in an FTZ. The plant will employ 500 people in the next ten years as
production expands. It is certified at the LEED Gold level, and BMW dealers will have to be
certified as LEED Gold dealers to sell the i3 and i8.
According to Mr. Swanson, the main reason that SGL ACF selected Moses Lake to build the
project was the low cost of power. Another reason was that the Northwest already has a significant
carbon fiber industrial base because of the Boeing 787 Dreamliner. Washington state’s image as a
high-tech state with high-tech workforce, and the proximity of the POS, also contributed to SGL
ACF’s conclusion that Moses Lake was a good fit for the company.
Chemi-Con Materials Corporation
Mr. Yusuke Nakajo briefed the two Commissions on the operations of Chemi-Con Materials, a
wholly owned subsidiary of Nippon Chemi-Con. The Moses Lake facility produces specially etched
aluminum foils which are the main material in aluminum electrolytic capacitors. Capacitors are