Sandvika, June 25, 2008: REC has entered into a significant long-term agreement for supply of mono-crystalline silicon wafers to China Sunergy Co. Ltd. Under the agreement, REC will until 2015 deliver wafers worth more than USD 400 million (~NOK 2.0 billion).
REC Wafer, currently significantly expanding it's monocrystalline silicon wafer capacity, has signed a long-term agreement with China Sunergy Co. Ltd, in Nanjing China , (NASDAQ: CSUN) for the supply of monocrystaline wafers.
The agreement, which runs until 2015, is structured as a take-or-pay contract with pre-determined prices and volumes for the entire contract period. The contract has an approximate value of more than USD 400 million (~NOK 2.0 billion). Contracts signed since 2006 now totals close to NOK 35 billion for the period until 2015.
"This contract is aligned with our increasing presence in the high efficiency monocrystalline cell segment and comes in addition to the significant contract portfolio signed to date, and the recent contract announced with Suniva in North America", says Erik Thorsen, President & CEO.
The deliveries will start in 2009 and continue until 2015. Prices and other commercial terms are in line with contracts signed since 2006 and include the security of a bank guarantee covering a significant part of the contract volume. Prices are predetermined to go down over time and will be depending on reduced wafer thickness.
"We are happy to partner with China Sunergy, and to cooperate with Dr. Zhao, the world record holder in cell efficiency on crystalline silicon, and by this further enhance the attractiveness of crystalline silicion cells.", says Ingelise Arntsen EVP of REC Wafer.
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
For further information please contact:
Erik Thorsen, President & CEO; +47 907 56 685
Jon André Løkke, SVP & Investor Relations Officer; +47 907 44 949