REC ASA - Secures a NOK 2.9 billion silicon pow...
Sandvika, October 20, 2008. REC has entered into a long-term
take-or-pay agreement for the supply of fine particulate silicon - or
"silicon powder" - from the FBR-process. The contract has a value in
excess of USD 500 million (~NOK 2.9 billion).
REC has entered into a long-term take-or-pay agreement with a
PV-company based in Asia for the supply of fine particulate silicon
from the FBR-process, so-called "silicon powder". Silicon powder has
traditionally had low or negative value, due to storage and
land-filling requirements. REC has developed technology to capture
and package these fine silicon materials, which opens valuable
commercial opportunities.
"This will enable us to increase the revenue and consequently the
financial return on our latest polysilicon expansions, through the
marketing of a product that REC presently does not intent to utilize
internally", says Erik Thorsen, President & CEO of REC.
The contract has a value in excess of USD 500 million (~NOK 2.9
billion), and runs for seven years from 2009 through 2015. Prices and
volumes are predetermined for the entire contract period, including
clauses covering annual price adjustments in the case of cost
escalations. Volumes delivered will start at a relatively low level
and increase over time to approximately 1,500 MT per year. According
to the agreement, REC Silicon will receive a prepayment fee of USD 65
million (~NOK 380 million) before the end of 2008. These "silicon
powder"- volumes come in addition to already communicated volumes of
prime material (i.e. FBR and Siemens prime).
For more information, please contact;
Erik Thorsen, President & CEO; +47 907 56 685
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 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 2007 of NOK 6,642 million and an operating
profit of NOK 2,588 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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