REC ASA - Invests NOK 400 million to extend Herøya capacity

Sandvika, June 17, 2008: Renewable Energy Corporation (REC) has decided to invest up to NOK 400 million to upgrade and extend the existing production capacity at Herøya.
 
 
REC has today approved plans to invest up to NOK 400 million to upgrade and extend the production capacity at the existing plants at the Herøya manufacturing complex by approx. 100MW. That should ensure total wafer production out of Norway of around 1.75 GW in 2011. In addition to the capacity contribution, the investment will also cover an upgrade of the plants (referred to as Herøya I and II) to enable the implementation of next generation wafer and wire thickness levels.
 
"This project provides very attractive financial returns by adding capacity at the same time as closing the technology gap between the older existing plants and the new plants currently under construction", says EVP Wafer Ingelise Arntsen.  
 
The extension will be implemented through an integrated construction project, and engineering will commence immediately. Construction is scheduled for start-up towards the end of the third quarter 2008, with ramp-up of the additional production capacity towards the end of 2009.
 
 
For more information, please contact;
Ingelise Arntsen, EVP Wafer; +47 91 31 75 78
Jon André Løkke, SVP & IRO; +47 67 81 52 65
 
  
About REC
REC is uniquely positioned as one of 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 and engage in project development activities in selected segments of the PV market. REC Group had revenues in 2007 of NOK 6,642 million and an operating profit of NOK 2,588 million. Please also see www.recgroup.com