Høvik, July 26, 2007
REC has entered into a significant long-term agreement for the supply of multi-crystalline silicon wafers to Moser Baer. Under the agreement, REC will deliver wafers worth approximately NOK 5.1 billion over the next 8 years.
REC, the world's largest manufacturer of multicrystalline silicon wafers for solar cells, has signed a long-term agreement with Moser Baer Photo Voltaic Ltd. (MBPV) for the supply of wafers. The 8-year agreement is structured as a take-and-pay contract with pre-determined prices and volumes for the entire contract period. The contract has a value of approximately USD 880 million (approximately NOK 5.1 billion).
"The significant level of planned and ongoing capacity expansions has given us the flexibility to secure additional sales contracts; this will provide further visibility on future revenues and earnings. The agreement will also enable us to broaden our customer and market base even more", says Erik Thorsen, President & CEO.
Delivery of wafers under the agreement will start in 2008 and increase over time in relation to future planned wafer production capacity increases. Prices and commercial terms are in line with contracts signed in the second half of 2006.
Moser Baer India Ltd., the parent of MBPV, is a world leader in the development and manufacturing of CD's and DVD's. The company has a strong future strategic focus on solar and is currently involved in both solar cell and solar module production. Moser Bear is listed in India.
"We are very happy to add Moser Baer as one of our strategic customers, a company that has a clearly proven track record of mass production of quality products", says Ingelise Arntsen, Executive Vice President Wafers.
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
About Moser Bear Photovoltaic
Moser Baer India Ltd. (MBI) is the second largest manufacturer of optical storage media in the world and reported revenues of more than Rs 20 Billion in FY07. Moser Baer Photo Voltaic Ltd. (MBPV), a wholly owned subsidiary of MBI, is in the business of photovoltaic cells and modules. MBPV plans to manufacture solar modules using different technologies including crystalline silicon, concentrators, thin films and other. Please also see www.moserbaer.in
For further information please contact:
Erik Thorsen, President & CEO; +47 907 56 685
Jon Andre Løkke, SVP & Investor Relations Officer; +47 67 81 52 65