PRESS RELEASE: REC ASA - Secures A USD 340 Million Wafer Sales Contract
16 Januar 2009 - 11:28AM
Dow Jones News
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.
About REC
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 Andr� L�kke, SVP & Investor Relations Officer; +47 907 44 949
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
http://www.recgroup.com
Copyright � Hugin AS 2009. All rights reserved.
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