REC to exit all wafer operations in Norway
(Thomson Reuters ONE) -
Sandvika, April 24, 2012: With prospects of continued negative operating
results, Renewable Energy Corporation ASA (REC) has decided to close down the
remaining 650 MW multicrystalline wafer plant at Herøya currently in operation.
Production at the plant is expected to discontinue in the second quarter, and
about 460 employees will be affected by the close down. REC will over the next
few months explore alternatives for the facility.
"The solar market has changed dramatically over the last few years. Despite
solid demand growth, overcapacity continues to negatively affect the wafer
prices. Our organization at Herøya has worked very hard to reduce cost and
improve quality. Over the last two years annual cost reductions have exceeded
25 percent, even though the cost position was held back by long term contracts
with uncompetitive suppliers. However, with extreme competition, especially from
China, and market prices down to one third of the prices one year ago, these
cost reductions have unfortunately not been sufficient. Significant continued
losses were to be expected from the wafer operations at Herøya going forward. We
therefore have no choice but to discontinue our operations in Norway", says Ole
Enger, President & CEO.
Three of four employee representatives in the REC Board of Directors voted
against the closedown decision.
The fixed assets of the wafer plant were written down to zero in 2011. REC will
recognize costs in relation to the close down of the plant in the second quarter
2012.
REC will provide an update on the solar market and REC's operations with the
presentation of the first quarter financial results tomorrow, April 25 at 08.00
CET, at Oslo Konserthus, Munkedamsveien 14, 0250 Oslo.
For more information, please contact;
John Andersen, Jr., EVP & Group COO; +47 901 74 080
Mikkel Tørud, VP & IRO; + 47 976 99144
About REC
REC is a leading vertically integrated solar energy company. REC produces
polysilicon, wafers, cells and modules for the solar industry, and silicon
materials for the electronics industry. REC also engages in project development
in selected PV segments. Founded in Norway in 1996, REC employs around 3,200
people globally with revenues of more than NOK 13 billion in 2011. Please visit
www.recgroup.com to learn more about REC.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Renewable Energy Corporation ASA via Thomson Reuters ONE
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Datum: 24.04.2012 - 13:10 Uhr
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