REC Silicon - Announcement from Hanwha Solutions on nominated board members

On 18 November 2021 Hanwha Solutions Corporation announced an agreement with Aker Horizons ASA (“AKH”) and REC Silicon ASA (“REC”) to acquire 16.67 percent of the shares in REC through a private placement and a share purchase from AKH. Completion of the transaction occurred on 19 January 2022.

On 23 March 2022 Hanwha Corporation and Hanwha Solutions Corporation announced a new agreement to acquire the remaining 16.67 percent of the shares in REC held by AKH. Completion of this transaction is expected to occur in May 2022. Following this transaction Hanwha Corporation and Hanwha Solutions Corporation will own up to 1/3 of the shares in REC and become the largest shareholder in the company.

This press release is issued by Hanwha Corporation and Hanwha Solutions Corporation. The purpose of the press release is to provide the shareholders of REC with further information ahead of the Extraordinary General Meeting that is scheduled to be held on 2 May 2022 to appoint new members to the board of directors of REC.

The Hanwha group is a leading business enterprise based in South Korea with USD 61 Bn. of revenue and USD 199 Bn. of assets. Hanwha Solutions Corporation, one of the key subsidiaries of the Hanwha group, is an PV supplier and manufacturer globally, operating the largest module production plant in the US and has also a significant presence in Europe through its Q CELLS division.

Q CELLS is a leading supplier with the highest market share in the US residential market and commercial solar market with 24 percent and 21 percent, respectively, and will continue to invest to expand the renewable business in the US.

REC is a polysilicon producer with the lowest CO2 footprint worldwide, with the production facility in Moses Lake being a key asset that is currently not operating due to market distortions.

During 2021 and 2022 market opportunities have increased significantly for REC to play a key role in restoring a domestic solar value chain in the US. This represents a potential for restarting the production of solar grade polysilicon with an ultra-low carbon footprint at the Moses Lake. Hanwha wishes to support the effort to reopen Moses Lake, to assist REC in assuming a position as a corner stone of the US solar supply chain. Hanwha’s ambition is to assist REC to reopen the Moses Lake factory from 2023. In addition, as a well-positioned supplier for silane gas, REC anticipates various investment opportunities with support from Hanwha.

The Extraordinary General Meeting is held to appoint new members to the board of directors to reflect the new ownership situation in REC and Hanwha’s commitment to support the company. Hanwha has nominated four highly qualified candidates, including two senior executives from Hanwha Solutions Corporation and Hanwha Corporation, and two experienced independent directors. The proposed board will be well positioned to take responsibility for the overall management of the company and to ensure that the company maintains sound and proper internal/external control against any potential risks.

Accordingly, it is our pleasure to nominate the board of directors composed as below:

NameRoleNationalityNote
Mr. Koo Yung LeeChairRepublic of KoreaCEO of Hanwha Solutions/
Q CELLS Division
Mr. Maeng Yoon KimDeputy ChairRepublic of KoreaCEO of Hanwha Corporation/Global Division
Dr. Renate Oberhoffer-FritzIndependentGermanyProfessor at Technical University of Munich
Ms. Heike HeiligtagIndependentGermanyInvestor in early phase startups in the energy sector

All four members have significant experience to provide leadership and the right environment to effectively promote the success of the company for the benefit of its shareholders. Hanwha Solutions Corporation and Hanwha Corporation consider that all members are highly effective with a good understanding of the REC’s opportunities as well as managing any risks that come along with the business. The members will be committed to carrying out the business in a responsible way and remain focused on improving the business of REC on behalf of all the shareholders.

For further information, please contact:
Nils O. Kjerstad
IR Contact
Phone: +47 9135 6659
Email: nils.kjerstad@crux.no

About REC Silicon
REC Silicon is a leading producer of advanced silicon materials, delivering high-purity polysilicon and silicon gas to the solar and electronics industries worldwide. We combine 30 years of experience and proprietary technology with the needs of our customers, with annual production capacity of more than 20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on the Oslo Stock Exchange (ticker: RECSI), the Company is headquartered in Fornebu, Norway.

For more information, go to: www.recsilicon.com