News Article
REC ASA secures a NOK 4 billion wafer sales contract
REC has entered into a significant long-term agreement for supply of multi-crystalline silicon wafers to Solland Solar Cells BV.
Under the agreement, REC will until 2015 deliver wafers worth around Euro 500 million (approximately NOK 4 billion).
REC, a manufacturer of multi-crystalline silicon wafers for solar cells, has signed a long-term agreement with Solland for the supply of wafers. The agreement, which runs until 2015, is structured as a take-and-pay contract with pre-determined prices and volumes for the entire contract period. The contract has a value of around Euro 500 million (approximately NOK 4 billion).
"The signing of this agreement is consistent with the already communicated strategy of securing long-term contracts for a certain portion of our future wafer volume, thereby providing visibility on revenues and earnings. Additionally, we are happy to broaden our European customer base and to consequently achieve a more balanced geographical market presence in our future wafer business", said Erik Thorsen, President & CEO.
The supply contract replaces and extends REC's existing supply relationship with Solland. Deliveries of wafers under the new agreement will increase over time, and level out at around 80 MWp per year. Prices and commercial terms are in line with contracts signed in the second half of 2006 and earlier this year. "We have had a supply relationship with Solland since they started their production in 2005 and are very encouraged by this opportunity to extend our relationship and contribute to Sollands ambitious growth plans", said Ingelise Arntsen, Executive Vice President REC Wafer.
"We are delighted to extend our relationship with REC further and see this as an important step to realise our future growth plans", said Gosse Boxhoorn, CEO Solland Solar.
