REC to discontinue module operations at REC Sca...
Sandvika, September 22, 2010; REC has today decided to initiate a process with
the trade unions with the intention to discontinue the operation at the 150 MW
module plant in Glava, Sweden. The plant will continue the production of modules
at somewhat reduced capacity utilization until the end of 2010.
"I would like to recognize the considerable efforts of the REC ScanModule team
over the last quarters to improve its cost position. Unfortunately the financial
performance of the plant has remained unsatisfactory, and despite the efforts of
the Glava team the prospects for long-term competiveness of the plant are weak",
says John Andersen, Jr., Executive Vice President & Group COO.
A closure of the REC plant in Glava is expected to affect approximately 300
employees. REC will take measures to support these employees in seeking new job
opportunities.
The operations of REC's 180 MW solar cell plant in Narvik, Norway, will not be
affected. The solar cells produced in Narvik will be used in the manufacturing
of REC Peak Energy Modules, partly in REC's Singapore facility and partly
through contract manufacturing arrangements. Consequently, REC expects to
maintain its current capabilities for supply of modules and at the same time
improve its overall cost position.
As earlier communicated, REC will provide an update on the Singapore operations
and further information on RECs expected cost position at the investor event to
be hosted in early November.
All product warranties provided by REC ScanModule AB will remain intact.
All property, plant, and equipment in REC ScanModule were written down to zero
in REC's financial statement for 2009. REC expects to recognize a provision for
restructuring cost, currently estimated to approximately SEK 104 million in the
third quarter 2010, including termination of employment agreements and other
contracts. Furthermore, based on current estimates for operations, the EBITDA
for REC's Glava plant is expected to be close to zero in the fourth quarter
2010.
For more information please contact;
Bjørn Brenna, EVP & CFO, +47 900 43 186
Mikkel Tørud, VP & IRO, +47 976 99 144
For press & media:
Kristin Nordal, Corporate Communications Manager, +47 900 15Â 550
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 close to
4,000 people worldwide. REC had revenues in excess of NOK 9 billion in 2009.
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)
[HUG#1445901]
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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