Oslo, June 20, 2007: Renewable Energy Corporation (REC) has decided to invest SEK 74 million to increase module production by 50 MW, bringing the total capacity up to 150 MW.
The Glava module plant in Sweden is currently being expanded from an annual production level of 45 MW to approximately 100 MW, and this decision to invest approximately SEK 74 million in additional production capacity will bring the total capacity further up to around 150 MW.
"REC is continuously working on plans for capacity expansions. This project is a relatively fast and cost efficient way of getting both additional capacity and improving the long-term cost position and profitability of our module production plant in Sweden", says Erik Thorsen President & CEO.
The project consists mainly of adding tabbing and stringing machines as well as ancillary equipment. It will also include additional areas for test equipment for production of next generation modules and consequently facilitate more rapid and efficient technology/product development.
The project will have a positive impact on direct labor cost and general overhead costs and only around 40 new employees will be added. The total number of employees at the plant will increase to around 220 people. Economies of scale will be improved as REC Solar takes on the position as the second largest module producer in Europe.
"REC Solar is already well established as a supplier of high quality modules, and the expansion will enable us to effectively deliver additional volumes", says John Andersen Jr., EVP Solar.
Production start-up is expected in April 2008, with a ramp-up period of only two quarters. Consequently, full capacity is expected in the fourth quarter of 2008.
REC is uniquely positioned in the solar energy industry with a broad presence across the solar value chain. 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. REC Group had revenues in 2006 of NOK 4,334 million and an operating profit of NOK 1,574 million. Please also see www.recgroup.com
For more information, please contact;
Erik Thorsen, President & CEO, +47 90 75 66 85
Jon Andre Løkke, SVP & Investor Relation Officer, +47 67 81 52 65