Høvik, October 25, 2007: REC, Evergreen and Q-Cells, equal partners in EverQ, have agreed to start preparations for an IPO of EverQ. At the same time, the three partners have approved a EUR 144 million investment in a new integrated wafer, cell and module plant which will increase the capacity of EverQ from 100 MW to 180 MW. REC has offered EverQ a polysilicon supply agreement which will enable further capacity increases to 600 MW, and allow EverQ to fast track industrialization of the string ribbon technology.
"Together with Evergreen and Q-Cells we have built EverQ into a well-recognized solar company. By initiating the preparations for an IPO and with the decision to nearly double the production capacity in Thalheim, EverQ is well positioned for further growth and development", says President & CEO Erik Thorsen in REC ASA.
REC, Evergreen and Q-Cells have signed a binding memorandum of understanding detailing the required steps to prepare EverQ for an IPO. An IPO will enable the company to industrialize the string ribbon technology faster and grow its business more rapidly. The preparation process will start immediately and advisors are expected to be appointed shortly. The final timing of the IPO is still to be decided.
To support the further growth ambitions of EverQ, REC has offered an additional supply agreement for polysilicon which should enable EverQ to increase its capacity up to 600 MW. The supply agreement totals approximately 4 000 MT delivered at market terms including an upfront payment. Annual shipments under the new agreement will peak at slightly more than 700 MT per year and will run until 2015. Total polysilicon volumes supplied by REC to EverQ under the existing and new agreements could potentially reach 2 200 MT per year.
Pre-engineering of the new production line in Thalheim, Germany will commence immediately. Production will be based on Evergreen's Quad furnace design.
EverQ has a proprietary right to the current technology base of Evergreen and will have the right to license all new material technology development by Evergreen on the StringRibbon platform over the 5 years following the IPO. EverQ will also build a strong R&D team to complement this access to new technology with own improvements.
As part of the preparations for the IPO, the management and organization of EverQ will be significantly strengthened to build EverQ to an independent company. The sales and marketing organization will be expanded as the distribution of modules will be under EverQ brand in the future.
For further information, please contact:
Erik Thorsen, President & CEO; +47 907 56 685
Jon Andre Løkke, SVP & IRO; +47 67 81 52 65
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 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