REC Secures a NOK 2.9 Billion Silicon Powder Contract



    
    REC has entered into a long-term take-or-pay agreement for the supply of
    fine particulate silicon - or 'silicon powder' - from the FBR-process. The
    contract has a value in excess of USD 500 million (~NOK 2.9 billion).

    
    SANDVIKA, Norway, Oct. 21 /CNW/ -- REC has entered into a long-term
take-or-pay agreement with a PV-company based in Asia for the supply of fine
particulate silicon from the FBR-process, so-called "silicon powder". Silicon
powder has traditionally had low or negative value, due to storage and
land-filling requirements. REC has developed technology to capture and package
these fine silicon materials, which opens valuable commercial opportunities.
    "This will enable us to increase the revenue and consequently the
financial return on our latest polysilicon expansions, through the marketing
of a product that REC presently does not intend to utilize internally," says
Erik Thorsen, President & CEO of REC.
    The contract has a value in excess of USD 500 million (~NOK 2.9 billion),
and runs for seven years from 2009 through 2015. Prices and volumes are
predetermined for the entire contract period, including clauses covering
annual price adjustments in the case of cost escalations. Volumes delivered
will start at a relatively low level and increase over time to approximately
1,500 MT per year. According to the agreement, REC Silicon will receive a
prepayment fee of USD 65 million (~NOK 380 million) before the end of 2008.
These "silicon powder" volumes come in addition to already communicated
volumes of prime material (i.e. FBR and Siemens prime).

    
     For more information, please contact:
     Erik Thorsen, President & CEO; +47 907 56 685
     Jon Andre Lokke, SVP & IRO; +47 907 44 949
    About REC
    
    REC is uniquely positioned as one of the most integrated companies 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 engages 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
http://www.recgroup.com.




For further information:

For further information: Erik Thorsen, President & CEO, +47 907 56 685,
or Jon Andre Lokke, SVP & IRO, +47 907 44 949, both of REC Web Site:
http://www.recgroup.com

Organization Profile

REC

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890