REC reports contract termination payments


REC reported that between 2006 and 2008 it entered into a number of long-term wafer sales contracts. The NOK200 million payment is in compensation for terminating one of these contracts.

The company has been dramatically scaling back its wafer production of late. Earlier this month it announced that it had reduced by half its capacity at its multicrystalline wafer facility in Glomford, Norway. Perviously it had reduced production at Herøya, Norway, by 60 percent.

REC’s wafer, well and module facility in Singapore, which has a capacity of 700 megawatt (MW), is operating as usual.

For the first quarter of 2012, REC expects to receive income of around NOK325 million (USD54.11) in relation to contract termination.