REC ASA - Secures a NOK 2.6 billion wafer sales contract

REC has entered into a new long-term agreement for supply of multi-crystalline silicon wafers to Neo Solar Power. Under the agreement, REC will until 2015 deliver wafers worth more than USD 450 million

REC has entered into a new long-term agreement for supply of multi-crystalline silicon wafers to Neo Solar Power. Under the agreement, REC will until 2015 deliver wafers worth more than USD 450 million (~NOK 2.6 billion).

REC has signed a long-term agreement with Neo Solar Power in Taiwan for the supply of wafers. The agreement, which runs until 2015, is structured as a take-or-pay contract which pre-determined prices and volumes for the entire contract period. The contract has an approximate value of more than USD 450 million (~NOK 2.6 billion).

"Including this latest contract, most of our wafer production for 2010 has now been sold. This should give us a relatively good visibility on revenues and earnings going forward", says Erik Thorsen, President & CEO.

The deliveries will start with limited volumes in 2nd half of 2009 and increase over the contract period. Prices and other commercial terms are in line with previously signed contracts, including the security of a bank guarantee covering a significant part of the contract volume. Prices are predetermined to go down over time and will depend on the customer's ability to utilize thinner wafers.

"Securing long-term agreements with leading solar cell producers is in line with our corporate strategy, we are proud to include Neo Solar Power in our customer portfolio", says Ingelise Arntsen EVP of REC Wafer.

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