REC receives EUR 39 million for terminating a l...
Sandvika, December 22, 2010: REC has agreed to terminate a long-term wafer sales
contract and receives approximately EUR 39 million cash compensation. REC and
the customer intend to enter into a new wafer sales contract for 2011.
In the period 2006 - 2008, REC entered into a number of long term take-or pay
wafer sales contracts and most of the contracts were supported by bank
guarantees. Due to the weakening market conditions in 2009, the contracts have
been re-negotiated on an ongoing basis. REC has now accepted to terminate one of
these contracts and will receive a cash compensation of approximately EUR 39
million in the fourth quarter 2010. The parties have the intention to enter into
a new wafer sales contract for 2011, based on current market terms.
Accounting treatment of the compensation will be evaluated before fourth quarter
reporting.
REC expects to increase shipments under the existing long-term wafer sales
contracts as well as further broaden its customer base. The termination of this
contract is therefore not expected to have negative impact on overall wafer
shipments going forward.
For further information, please contact:
Mikkel Tørud, VP & IRO, phone: +47 976 99 144
About REC
REC is a leading vertically integrated player in the solar energy industry. REC
is among the world's largest producers of polysilicon and wafers for solar
applications, and a rapidly growing manufacturer of solar cells and modules. REC
is also engaged in project development activities in selected PV segments.
Founded in Norway, REC is an international solar company, employing more than
4,100 people worldwide. REC had revenues in excess of NOK 9 billion in 2009.
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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