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Renewable Energy Corporation ASA Kjørbo, June 12, 2008: REC has entered into a significant long-term agreement for supply of multi-crystalline silicon wafers to Gintech. Under the agreement, REC will until 2015 deliver wafers worth more than USD 600 million (~NOK 3 billion).
REC, the world's largest manufacturer of multicrystalline silicon wafers, has signed a long-term agreement with Gintech Energy Corporation in Taiwan 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 an approximate value of more than USD 600 million (~NOK 3 billion).
"The significant level of planned and ongoing capacity expansions gives us additional opportunities to secure new long term sales contracts that provide further visibility on future revenues and earnings. This agreement will also enable us to broaden our customer and market base even more", 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 contracts signed since 2006 and include the security of a bank guarantee covering a significant part of the contract volume. Prices are predetermined to go down over time and will be depending on customer's ability to reduce wafer thickness. Contracts signed since 2006 now totals close to NOK 30 billion for the period 2007-2015.
"Including this latest contract, more than 80 percent of REC Wafers 2010 production volume has been sold. This is in line with our strategy of securing long-term off-take agreements with leading solar cell producers, and we are proud to include Gintech in our customer portfolio", 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 largest producers 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 André Løkke, SVP & Investor Relations Officer; +47 67 81 52 65
