REC to assess permanent closedown of parts of t...
Sandvika, September 28, 2011: The Board of Directors of Renewable Energy
Corporation ASA (REC) has resolved to initiate a process, including formal
deliberations with the employee representatives to assess permanent closedown of
parts of the production capacity in Norway.
On the basis of continued weak market conditions and prospects of significant
negative cash flow, REC considers permanent closedown of the production capacity
at the oldest multicrystalline wafer plants at Herøya, the multicrystalline
wafer plant in Glomfjord and the solar cell plant in Narvik. This represents
approximately 775 MW of annual wafer capacity or 45 percent of REC's wafer
capacity in Norway, as well as 180 MW of solar cell capacity. Approximately 700
employees are expected to be affected by the potential shutdowns.
Operation continues at the newest multicrystalline wafer plants at Herøya (650
MW annual capacity) and the monocrystalline plant in Glomfjord (300 MW annual
capacity). REC works intensively to improve operation and reduce costs at these
facilities, and positive cash flow continues to be the main criteria for
continued operation.
The integrated wafer, cell and module facility in Singapore (700 MW annual
module capacity) and the polysilicon facilities in the US (19.000 MT annual
polysilicon capacity) continues to operate at full capacity.
"This is an unfortunate, but necessary step in the current market environment.
We are mindful of the impact the potential closedowns will have on the affected
employees and the local communities in Norway. This is therefore not a decision
we take lightly. We are currently working hard to regain the competitiveness of
our remaining Norwegian operations. In this challenging market conditions, I am
pleased to see that the good development in our Singapore wafer, cell and module
production and in our US polysilicon production. This gives us a foundation for
the future", said Ole Enger, President & CEO.
REC will assess and present its estimates for costs and write-downs in relation
to the restructuring of the production plants in Norway in connection with the
publication of the third quarter results on October 26(th) 2011.
For more information, please contact;
Mikkel Tørud, VP & IRO; +47 976 99 144
Peder Poulsson, Investor Relations Analyst; +47Â 950 26Â 311
For press and media, please contact:
John Andersen, Jr., Group COO & EVP Wafer, Cells and Modules; +47Â 901 74 080
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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