Renewable Energy Corporation ASA (REC.OL), the world’s largest producer of polysilicon for solar panels, has decided to invest close to NOK 13 billion (US$2.5 billion) in the first phase of an integrated manufacturing complex for production of wafers, cells and modules in Singapore.
The investment will be funded through debt financing and cash flow. Production is expected to commence in 1Q10, and reach full capacity of 740 megawatts (MW) of wafers, 550 MW of cells and 590 MW of modules before 2012. The annual consolidated revenues from these volumes are expected to be NOK 10-11 billion in 2012.
The investment decision covers the first of several planned development phases.
"This investment supports REC’s position as a leading provider of highly competitive solar energy solutions, and in achieving our main corporate goals of reducing costs and securing profitable growth. The project cost levels should enable us to compete profitably at grid-parity prices in several markets, which is essential in building a robust business case", says Erik Thorsen, President & CEO of REC ASA
The solar plant will be based on multicrystalline technology, and the integrated business model secures volume off-take and margins as well as an in-house base for product development across the value chain. REC has already secured supply of polysilicon through its ongoing expansion in Moses Lake and Butte, and other necessary raw materials to facilitate the expected production levels.
REC has signed a mandate for a fully underwritten facility from ABN AMRO, BNP Paribas, DnBNOR, Nordea and SEB covering new loans and guarantees of NOK 10 billion at market terms.
Agreements have already been reached for all construction permits.
About REC
REC is uniquely positioned as one of the most integrated companies 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.
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