Høvik, July 31, 2006
REC has entered into a long-term agreement with Motech Industries for the supply of multicrystalline silicon wafers. Under the agreement, REC will deliver wafers to Motech Industries worth approx. NOK 2 billion over the next 5 years.
REC's subsidiary REC ScanWafer, which is the world's largest manufacturer of multicrystalline silicon wafers for solar cell production, has signed a new long-term sales agreement with the Taiwanese solar cell producer Motech Industries. The agreement, which is structured as a take-or-pay contract, has a value of approx. NOK 2 billion.
The agreement formalizes and expands the two companies' ongoing cooperation, which has lasted since they both entered into the photovoltaic industry in the late 90`s. Furthermore, it continues REC's practice of securing long-term sales agreements with industry leaders in multicrystalline silicon solar cells as a basis for further growth and development.
'REC is committed to continued growth, most recently underpinned by the decision to significantly expand our capacity in polysilicon. This agreement with Motech Industries strengthens REC's position as a leading supplier of multicrystalline silicon wafers and forms the basis for further growth in this part of the Group', says Erik Thorsen, President and CEO of REC ASA.
Motech is a fast growing crystalline silicon solar cell producer, located in Taiwan.
By the end of 2006 the company will have an estimated production capacity of 200 MWp at its facilities in Tainan Science Park, making it one of the world's top dedicated solar cell producers.
'Motech Industries has been a valued customer of REC for several years and by executing this agreement we expand and enforce our relationship. In addition to being important commercially, we also expect that the agreement with Motech Industries will provide a framework for continued product development to make solar energy even more competitive in the future', says John Andersen, Jr., Executive Vice President Wafers of REC ASA.
The wafers to be supplied under the agreement will be produced at REC's two wafer plants at Herøya, Norway. In addition it is expected that Motech Industries will take delivery from new wafer plants which will be brought on stream by REC in the future, as new polysilicon capacity is made available through the ongoing expansion activities.
REC is uniquely positioned in the solar energy industry as the only company with a presence across the entire value chain. REC Silicon and REC Wafer are the world's largest producers of solar grade silicon and wafers for solar applications. REC Solar produces solar cells at its plant in Norway and solar modules at its facility in Sweden. REC Group had revenues in 2005 of 2.454 MNOK and an operating profit of 601 MNOK. Please also see www.recgroup.com
Motech Industries, located in Tainan Science Park, is a global leader in the solar cell manufacturing industry building its reputation on quality, customer service, and aggressive expansion plans. Motech's new 25,000-square-meter Fab.2, due to be completed by September of this year, combined with the existing Fab.1 will increase the total solar cell production capacity to 200MWp per year by the end of 2006. Consistently ranked as one of the best in investor satisfaction during recent years, Motech is publicly traded on the Taiwan Stock Exchange.
For further information please contact:
Erik Thorsen, President & CEO; +47 907 56 685
John Andersen Jr., Executive Vice President Wafers; +47 90 17 40 80
Jon Andre Løkke, SVP & Investor Relations Officer; +47 67 81 52 65