€1.3 billion REC production facility to reach full capacity by year end

The company says that after a successful construction and ramp-up phase, it is set to achieve a “cost competitive position” through the entire value chain from polysilicon to modules.

It goes on to say that by the fourth quarter of next year, it is targeting a full cost position of 97 euro cents per watt, based on the cost of manufacturing fluidized bed reactor (FBR) in the U.S. and wafers, cells and modules in Singapore.

This cost target, explains REC, includes cost of sales and general administration, corporate overhead, research and development, as well as depreciation. Excluding depreciation the cash cost target, it says, is an industry leading 74 euro cents per watt.

Reuters additionally reported that the company’s Singapore plant employed new technology that would drive down production costs to 1.05 euros per watt in the fourth quarter of 2011 from 1.86 euros per watt in the second quarter of this year.

Furthermore, the company states its plans to further leverage investments in infrastructure at the Singapore site to increase module production to 800 megawatts (MW) by 2012, exceeding the nameplate capacity by approximately 35 percent.

"I am impressed by the performance demonstrated by the Singapore organization during construction and ramp-up of the new facility. This achievement gives me confidence in the organization’s ability to continue to improve and further strengthen REC’s competitive position," comments CEO Mr. Ole Enger.

Production targets

According to Reuters, the company has also set its 2011 polysilicon production target at 16,000 tons, up from 13,000 tons in 2010. Silane gas sales are set to reach 2,150 tons next year, compared with 1,850 in 2010, while module production is set to reach 750 MW versus 490 this year.