REC considering permanent PV plant closures


In a statement released, the company said that the board of directors has "resolved to initiate a process, including formal deliberations with the employee representatives to assess permanent closedown of parts of the production capacity in Norway."?

A final decision is expected within the next one to two months, Mikkel Tørud, VP & IRO for the Renewable Energy Corporation ASA told pv magazine. He added that until now the Norwegian government has, as part of its temporary layoff scheme, compensated the company's employees.

The facilities under consideration are the two multicrystalline wafer plants at Herøya and one at Glomfjord, and the solar cell plant in Narvik. If they go ahead, the closures would see 775 megawatts (MW) of REC's annual wafer capacity or 45 percent of it wafer capacity in Norway, and 180 MW of solar cell capacity lost.

In terms of what REC will do with the facilities and their equipment, Tørud said that no decision had yet been made. He explained that the company would have to evaluate the options.

The company did say that work would continue at its two newest multicrystalline wafer plants at Herøya, which has a 650 MW annual capacity and at its 300 MW monocrystalline plant in Glomfjord.

"REC works intensively to improve operation and reduce costs at these facilities, and positive cash flow continues to be the main criteria for continued operation," said the statement.

The company’s integrated wafer, cell and module facility in Singapore, where it has an annual photovoltaic module capacity of 700 MW and its 19.000 MT U.S. polysilicon facilities will reportedly continue to operate at full capacity.

Back in May, the manufacturer announced it would temporarily scale back its wafer and cell production capacities due to weak market demand and decreasing prices. These changes came into effect on July 1, affecting around 500 employees.

The company then announced in August that it would extend its photovoltaic production shutdown in Norway until the end of the year.

"This is an unfortunate, but necessary step in the current market environment. We are mindful of the impact the potential closedowns will have on the affected employees and the local communities in Norway. This is therefore not a decision we take lightly," stated Ole Enger, president & CEO.

He continued, "We are currently working hard to regain the competitiveness of our remaining Norwegian operations. In this challenging market conditions, I am pleased to see that the good development in our Singapore wafer, cell and module production and in our U.S. polysilicon production. This gives us a foundation for the future."

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.