Sandvika, January 16, 2008: REC has entered into a long-term agreement for supply of multi crystalline silicon wafers to LG Electronics Inc. Under the agreement, REC will until 2014 deliver wafers worth more than USD 340 million (~NOK 2.2 billion).
REC Wafer, the world's leading manufacturer of multicrystalline silicon wafers, has signed a long-term agreement with LG Electronics Inc. in Korea for the supply of multi crystalline wafers. The agreement, which runs until 2014, is structured as a take-or-pay contract with pre-determined prices and volumes for the entire contract period. The contract has an estimated value of more than USD 340 million (~NOK 2.2 billion).
"We are happy to sign a new long-term contract with one of the leading electronics companies in the world. REC's total contract portfolio, in excess of NOK 60 billion, provides a reasonable visibility on future revenues", says Erik Thorsen, President & CEO.
The deliveries will start with limited volumes in 2010 and increase over the contract period. Prices are in line with earlier signed contracts and are predetermined to go down over time also depending on customer's ability to utilize thinner wafers. Other commercial terms also falls within the standard REC contract framework.
"We are proud to include LG Electronics to our customer portfolio. This provides us with an exciting opportunity to learn from their extensive mass production and product development capabilities", 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 leading producer 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