REC sees potential in APAC region


Norwegian REC has strengthened its position in the U.S. via long-term supply agreements with 818MW planned for delivery in 2015 and 2016. The company states that 50% of its total sales in Q2 2015 are to the U.S.

"Even in the event that the tax benefits in the U.S. will be reduced from 30 to 10 percent, we are well-positioned to handle it," Luc Graré, Senior Vice President Sales and Marketing elaborated in an interview with pv magazine. REC expects market conditions in the U.S. in 2015 to continue being favorable whereas a more conservative progress is expected in Europe. Having said that the Norwegian company has so far successfully balanced its sales decline in Europe with U.S. orders.

On the manufacturing front, REC states that its manufacturing capacity expansion from 954MW at the end of 2014 to 1,300MW by end of 2015 is on track.

APAC and new markets

REC has shipped 45MW worth of modules to the APAC region in Q2 2015. Thailand, particularly, has been a strong foothold for the company with supply agreements amounting to 35MW secured. Thailand’s slice of the pie accounts for 78% of REC’s total sales in APAC in Q2.

REC is also expecting to have stronger business focus in Japan and an enlarged customer portfolio for projects less than 1MW. REC has managed to secure its position for approved project pipelines by METI in Japan. The company has also stated that it will seek to enter new markets within the African region as a continuing strategy.

The Elkem Group move

Officially as of May 13 this year, REC is part of the Elkem Group, a norwegian company producing solar grade silicon among others. The group is owned by China National Bluestar Group. REC Solar ASA has already sold all of REC’s assets to Bluestar Elkem and is no longer the parent company. REC nevertheless will continue to be headquartered in Norway with its operational headquarters in Singapore where it seeks to explore new business models.