Sandvika, March 21, 2012: Renewable Energy Corporation ASA (REC) has decided to permanently close down its operations in Glomfjord, Norway.
With prospects of continued negative operating results in Glomfjord, REC has decided to close down the 300 MW monocrystalline wafer plant. The plant is expected to be closed shortly, and about 200 employees will be affected.
"Our organization in Glomfjord has demonstrated operational improvements and cost reductions that are impressive, but this has unfortunately not been sufficient to ensure profitability in a very challenging market environment. We are conscious of the impact the shutdown will have on the affected employees and the community of Glomfjord, and this is therefore not a decision we have taken with ease", said Ole Enger, President & CEO.
Three out of four employee representatives in the REC Board of Directors voted against the closedown decision.
The fixed assets of the wafer plant were written down to zero in 2011. REC will recognize costs and obligations in relation to the close down of the plant in the first quarter 2012. Costs related to close down of production capacity in Norway will be excluded from EBITDA in the covenant calculation in REC's bank loan agreement. REC will also scale down the credit line to NOK 4.0 billion in line with the company needs.
For more information, please contact;
Mikkel Tørud, VP & IRO; +47 976 99 144
For press and media, please contact:
John Andersen, Jr., EVP & Group COO; +47 901 74 080
REC is a leading vertically integrated player in the solar energy industry. Ranked among the world's largest producers of polysilicon and wafers for solar applications and a rapidly growing manufacturer of solar cells and modules, REC also engages in project development activities in selected PV segments. Founded in Norway in 1996, REC is an international solar company, employing about 3,700 people worldwide with revenues of more than NOK 13 billion in 2011. Please visit www.recgroup.com to learn more about REC
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)