Norway's REC Secures NOK1.2 Billion Wafer Sales Contract

Norwegian solar energy company Renewable Energy Corporation, or REC, (REC.OS) Wednesday said it has entered into a two year multicrystalline wafer sales contract with an Asian cell and module producer worth around NOK1.2 billion ($201.3 million).

The contract will run from the beginning of 2011 to the end of 2012 and is structured as a take-or-pay contract with wafers delivered at the prevailing market price. REC has already received a payment of 10% of the contract, as a first installment.

The client wasn't named.

"As REC's wafer production continues to grow, REC expects to increase shipments under the existing long-term wafer sales contracts as well as further broaden its customer base," REC said in a statement.

The company added that in 2011, they expect to deliver wafers to about 12-15 external customers. They also said that it is expected that no single customer would represent more than around 10% of the total wafer production in Norway.

-By Erik Durhan, Dow Jones Newswires; [phone]; [e-mail]