Høvik, October 25, 2007: REC has entered into a significant long-term agreement for supply of multi-crystalline silicon wafers to Photovoltech. Under the agreement, REC will until 2015 deliver wafers potentially worth approximately EUR 670 million (approximately NOK 5.3 billion).
REC, the world's largest manufacturer of multicrystalline silicon wafers for solar cells, has signed a long-term agreement with Photovoltech for the supply of wafers. The agreement, which runs until 2015, 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 EUR 670 million (approximately NOK 5.3 billion).
"This agreement secures future revenues and earnings at attractive prices and still leaves sufficient wafer volumes for internal expansions in REC's cells and module business", says Erik Thorsen, President & CEO.
The supply contract replaces and extends REC's existing supply relationship with Photovoltech. Deliveries of wafers under the new agreement will commence in 2009 and increase over time, and level out at around 100 MWp per year. Prices and commercial terms are in line with contracts signed in the second half of 2006 and earlier this year.
"We have had a supplier relationship with Photovoltech since they started their production in 2003 and we are very encouraged by this opportunity to extend our relationship further", says Ingelise Arntsen, Executive Vice President REC Wafer.
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
Photovoltech NV is a crystalline silicon cell producer, located in Tienen, Belgium. The shareholders of Photovoltech are Total, Electrabel (part of the Suez-group), IMEC and Soltech. Photovoltech, starting its production in November 2003, is a company in strong growth, with a turnover in 2006 of more than EUR 40 million and an EBT of more than 10 % on turnover. The long-term agreement with REC represents an important milestone in the further development of Photovoltech.
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