REC ASA - Adjusting wafer production volumes
Sandvika, May 25, 2009: REC Wafer has decided to temporarily take out
approximately 35 percent of its production capacity due to a
challenging market situation and low demand visibility. The temporary
reduction will affect approximately 180 employees. REC Wafer
continuously evaluates the market situation and will prepare for a
fast start-up process when the market outlook becomes more
predictable.
"We have seen an increasingly difficult market so far this year and
need to take measures to optimize our capacity utilization and secure
flexibility in regards to timing of product deliveries. Although we
temporarily take out a part of our capacity, we follow the market
development closely and are making sure that we stay prepared to
increase production on short notice," says Ingelise Arntsen, EVP
Wafer.
As the timing of a restart is yet undecided, REC Wafer is presently
not prepared to indicate the expected effect of the temporary
reduction in capacity utilization on the overall annual production of
wafers in 2009.
While it also is too early to quantify the financial consequences for
REC Wafer, it should be noted that continued production at full
capacity would have required external purchases of polysilicon at
spot prices that are higher than the price levels in the long-term
polysilicon supply contracts. As previously communicated, REC
Silicon's polysilicon production is expected to increase when
commercial production from the new Silicon III resumes in the third
quarter 2009.
For more information, please contact;
Jon Andre Løkke, SVP & IRO; +47 907 44 949
About REC
REC is uniquely positioned as one of the most integrated companies in
the solar energy industry. REC Silicon and REC Wafer are among the
world's largest producers of polysilicon and wafers for solar
applications. REC Solar produces solar cells and solar modules and
engage in project development activities in selected segments of the
PV market. REC Group had revenues in 2008 of NOK 8,191 million and an
operating profit of NOK 2,529 million. Please also see
www.recgroup.com
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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