REC reduces production
Sandvika, May 24, 2011: Renewable Energy Corporation ASA (REC) intends to reduce
production of wafers, cells and modules, from July 1(st) 2011, as a response to
the current market conditions.
REC will initiate a process with the trade unions, with the intention to halt
production at the oldest wafer plants at Herøya, Norway, and at the solar cell
plant in Narvik, Norway. Further, REC-branded modules will not be manufactured
under contract by third parties in the third quarter.
These measures are expected to reduce REC's wafer production by approximately
125 MW in the third quarter, representing 30 percent of the wafer capacity in
Norway in the quarter, while cell and module production will be reduced by
approximately 50 MW in the same period. Such reduction in production is expected
to affect approximately 300 employees at Herøya and 200 employees in Narvik,
through temporary lay-offs. Polysilicon production in the US and wafer, cell and
module production in Singapore will not be affected by these measures.
Subject to market conditions, REC will evaluate the appropriate production
levels going forward. REC is therefore at this time not prepared to indicate the
expected effect of the reduction in capacity utilization on the annual
production volumes in 2011.
Due to the weak wafer and module market and lower selling prices for these
products, RECs second quarter operating results are expected to be reduced to a
level well below the previous quarter.
For more information, please contact;
Mikkel Tørud, VP & IRO; +47 976 99 144
Peder Poulsson, Investor Relations Analyst; +47Â 950 26Â 311
About REC
REC is a leading vertically integrated player in the solar energy industry.
Ranked among the world's largest producers of polysilicon and wafers for solar
applications and a rapidly growing manufacturer of solar cells and modules, REC
also engages in project development activities in selected PV segments. Founded
in Norway in 1996, REC is an international solar company, employing more than
3,900 people worldwide with revenues close to NOK 14 billion in 2010. Please
visitwww.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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