Kjørbo, December 11, 2007: REC has entered into a significant long-term agreement for supply of multi-crystalline silicon wafers to Solland Solar Cells BV. Under the agreement, REC will until 2015 deliver wafers worth around EUR 500 million (approximately NOK 4 billion).
REC, the world's largest manufacturer of multi-crystalline silicon wafers for solar cells, has signed a long-term agreement with Solland 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 around EUR 500 million (approximately NOK 4 billion).
"The signing of this agreement is consistent with the already communicated strategy of securing long-term contracts for a certain portion of our future wafer volume, thereby providing visibility on revenues and earnings. Additionally, we are happy to broaden our European customer base and to consequently achieve a more balanced geographical market presence in our future wafer business", says Erik Thorsen, President & CEO.
The supply contract replaces and extends REC's existing supply relationship with Solland. Deliveries of wafers under the new agreement will increase over time, and level out at around 80 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 supply relationship with Solland since they started their production in 2005 and are very encouraged by this opportunity to extend our relationship and contribute to Sollands ambitious growth plans", says Ingelise Arntsen, Executive Vice President REC Wafer.
"We are delighted to extend our relationship with REC further and see this as an important step to realize our future growth plans", says Gosse Boxhoorn, CEO Solland Solar.
REC is uniquely positioned as the most integrated company in the solar energy industry. 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
Solland is a crystalline silicon cell producer, located between Heerlen and Aachen at the border of the Netherlands and Germany. Main shareholder is the Dutch utility company DELTA. Solland, started production in 2005 and is growing strongly with 60 MWp production capacity in 2007, and a target of 170 MWp in 2008 and 500 MWp in 2010.
For further information please contact:
Erik Thorsen, President & CEO; +47 907 56 685
Jon André Løkke, SVP & Investor Relations Officer; +47 67 81 52 65