REC ASA - Secures a NOK 3 billion wafer sales c...
Kjørbo, June 12, 2008: REC has entered into a significant long-term
agreement for supply of multi-crystalline silicon wafers to Gintech.
Under the agreement, REC will until 2015 deliver wafers worth more
than USD 600 million (~NOK 3 billion).
REC, the world's largest manufacturer of multicrystalline silicon
wafers, has signed a long-term agreement with Gintech Energy
Corporation in Taiwan for the supply of wafers.
The agreement, which runs until 2015, is structured as a take-and-pay
contract with pre-determined prices and volumes for the entire
contract period. The contract has an approximate value of more than
USD 600 million (~NOK 3 billion).
"The significant level of planned and ongoing capacity expansions
gives us additional opportunities to secure new long term sales
contracts that provide further visibility on future revenues and
earnings. This agreement will also enable us to broaden our customer
and market base even more", says Erik Thorsen, President & CEO.
The deliveries will start with limited volumes in 2nd half of 2009
and increase over the contract period. Prices and other commercial
terms are in line with contracts signed since 2006 and include the
security of a bank guarantee covering a significant part of the
contract volume. Prices are predetermined to go down over time and
will be depending on customer's ability to reduce wafer thickness.
Contracts signed since 2006 now totals close to NOK 30 billion for
the period 2007-2015.
"Including this latest contract, more than 80 percent of REC Wafers
2010 production volume has been sold. This is in line with our
strategy of securing long-term off-take agreements with leading solar
cell producers, and we are proud to include Gintech in our customer
portfolio", says Ingelise Arntsen EVP of REC Wafer.
About REC
REC is uniquely positioned as one of the most integrated company 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
For further information please contact:
Erik Thorsen, President & CEO; +47 907 56 685
Jon André Løkke, SVP & Investor Relations Officer; +47 67 81 52 65
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