Høvik, October 18, 2006
REC has entered into its third long-term sales agreement on multicrystalline silicon wafers since summer this year. Under the new agreement with BP Solar, one of the world largest solar companies, REC will deliver wafers worth approx. NOK 2.7 billion over the next 6 years. The total value of the three announced agreements accumulates to approx. NOK 8 billion.
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 sales agreement with BP Solar. The agreement, which is structured as a take-or-pay contract, has a base value of approx. NOK 2.7 billion. In addition, BP Solar has an option to purchase additional wafers with a total value of approx. NOK 200 mill during the four last years of the agreement.
'By entering into a long-term supply agreement with a reputable company like BP Solar we continue to build a robust platform for further growth in multicrystalline wafers', says Erik Thorsen, President and CEO of REC ASA.
BP Solar manufactures, designs, markets and installs quality solar electric systems for a wide range of applications in the residential, commercial and industrial sectors.
With over 2200 employees and installations in over 160 countries, BP Solar is one of the world's largest solar companies. BP Solar has manufacturing facilities in the US, Spain, India, China and Australia.
'This agreement is another proof point for BP Solar's commitment to growth as we continue our efforts to expand capacities world wide to meet strong customer demand', says Lee Edwards BP Solar CEO.
'We are pleased that our long-standing relationship with BP Solar has materialized in the form of a significant sales agreement and we look forward to our continued cooperation in the years to come ', 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.
About BP Solar
BP Solar is a global company with over 2200 employees focused on harnessing the sun's energy to produce solar electricity. This includes the design, manufacture and marketing of quality solar electric systems for a wide range of applications in the residential, commercial and industrial sectors. With over 30 years of experience and installations in over 160 countries, BP Solar is one of the world's largest solar companies and has manufacturing facilities in the U.S., Spain, India, China and Australia. In 2005, BP announced plans to invest $8 billion over 10 years in a new business called BP Alternative Energy, which aims to extend significantly BP's capabilities in solar, wind power, hydrogen power and gas-fired power generation.
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
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