Høvik, September 15, 2006
REC has entered into a long-term agreement with Sumitomo Corporation for the supply of multicrystalline silicon wafers to Sharp, the world's no. 1 solar cell and module manufacturer. Under the agreement, REC will deliver wafers to Sharp worth approx. NOK 3.1 billion over the next 6 years.
REC's subsidiary REC ScanWafer, which is the world's largest manufacturer of multicrystalline silicon wafers for solar cell production, has signed a long-term agreement with Sumitomo Corporation for the supply of wafers to Sharp. The agreement, which is structured as a take-or-pay contract, has a value of approx. NOK 3.1 billion.
Sumitomo Corporation, with whom REC has had a long standing business relationship in polysilicon and monocrystalline wafers, will act as REC's commercial representative towards Sharp.
'This significant sales agreement is further evidence of REC's strong commitment to growth and we look forward to working together with Sharp to that end. We are also pleased to extend our cooperation with Sumitomo Corporation into multicrystalline wafers', says Erik Thorsen, President and CEO of REC ASA.
Sharp is the world's leading manufacturer of solar cells and modules. According to Photon International, Sharp's solar cell production reached 428 MW in 2005, equivalent to a market share of 24%. This was more than 2.5 times the size of the second largest cell manufacturer. Sharp has solar cell and module manufacturing facilities in Japan and solar module manufacturing facilities in the UK and the US.
'As the leading manufacturer of multicrystalline silicon wafers we are very proud to be associated with the world's unrivaled no.1 in solar cell manufacturing. We are convinced that our cooperation with Sharp will stimulate product development and further improve our competitive position', says John Andersen, Jr., Executive Vice President Wafers of REC ASA.
Including ongoing expansion projects, REC will double its current wafer production capacity to approx. 600 MW. As additional polysilicon becomes available from the expansion projects in REC Silicon, the contract portfolio of REC now forms the basis for further wafer expansion projects going forward.
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 and solar modules. REC Group had revenues in 2005 of 2.454 MNOK and an operating profit of 601 MNOK. Please also see www.recgroup.com
About Sumitomo Corporation
Sumitomo Corporation engages in diverse business activities through its worldwide network. These include various domestic and overseas transactions and import and export of a wide range of goods and commodities, and also providing a wide range of services and investing in fields such as metals, transportation and construction systems, machinery and electricity, media, electronics and network, chemicals, mineral resources and energy, consumer goods and services, materials and real estate, and finance and logistics. Please also see www.sumitomocorp.jp
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