The story says Luoynag Zhonggui has been dumping manufacturing waste - in particular a toxic chemical called silicon tetrachloride - in open fields outside its factory. The Post notes that silicon tetrachloride is highly toxic, and breaks down into chlorine and hydrochloric acid.

The story mentions that Luoyang Zhonggui supplied polysilicon to Suntech (STP); some digging around finds other customers include China Sunergy (CSUN) (here’s a story on an announcement of their relationship from last year), and LDK Solar (LDK), as shown in various SEC filings.

You’d think this could be good news for MEMC Electronic Materials (WFR), one of the few public players in the polysilicon market. But it could be damaging to the industry overall if the solar cell business is suddenly seen as a lot less green than it would seem at first glance.

In Monday’s trading:

  • MEMC is down $1.35, or 1.8%, at $72.76.
  • Suntech is down $1.32, or 3.9%, at $32.75.
  • China Sunergy is down 24 cents, or 3.5%, at $6.64.
  • LDK Solar is down $1.45, or 6.5%, at $21.04.