REC to permanently close down its operations in Glomfjord, Norway
(Thomson Reuters ONE) -
Sandvika, March 21, 2012: Renewable Energy Corporation ASA (REC) has decided to
permanently close down its operations in Glomfjord, Norway.
With prospects of continued negative operating results in Glomfjord, REC has
decided to close down the 300 MW monocrystalline wafer plant. The plant is
expected to be closed shortly, and about 200 employees will be affected.
"Our organization in Glomfjord has demonstrated operational improvements and
cost reductions that are impressive, but this has unfortunately not been
sufficient to ensure profitability in a very challenging market environment. We
are conscious of the impact the shutdown will have on the affected employees and
the community of Glomfjord, and this is therefore not a decision we have taken
with ease", said Ole Enger, President & CEO.
Three out of four employee representatives in the REC Board of Directors voted
against the closedown decision.
The fixed assets of the wafer plant were written down to zero in 2011. REC will
recognize costs and obligations in relation to the close down of the plant in
the first quarter 2012. Costs related to close down of production capacity in
Norway will be excluded from EBITDA in the covenant calculation in REC's bank
loan agreement. REC will also scale down the credit line to NOK 4.0 billion in
line with the company needs.
For more information, please contact;
Mikkel Tørud, VP & IRO; +47 976 99 144
For press and media, please contact:
John Andersen, Jr., EVP & Group COO; +47 901 74 080
About REC
REC is a leading vertically integrated player in the solar energy industry.
Ranked among the world's largest producers of polysilicon and wafers for solar
applications and a rapidly growing manufacturer of solar cells and modules, REC
also engages in project development activities in selected PV segments. Founded
in Norway in 1996, REC is an international solar company, employing about 3,700
people worldwide with revenues of more than NOK 13 billion in 2011. Please visit
www.recgroup.com to learn more about REC
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Renewable Energy Corporation ASA via Thomson Reuters ONE
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Datum: 21.03.2012 - 08:15 Uhr
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News-ID 126917
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