REC ASA (Sandvika, Norway), one of the most integrated companies in the solar energy industry, has entered into a new long-term agreement for supply of multi-crystalline silicon wafers to Neo Solar Power (Taiwan). Under the agreement, REC will deliver wafers worth more than USD 450 million until 2015 ( approx. NOK 2.6 billion). 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, REC reports in a press release. The contract due to REC 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 of REC.

Wafers to become thinner and cheaper

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.

2008-09-30 | Courtesy: REC ASA | solarserver.com © Heindl Server GmbH