REC Reduces Production, Cuts Staff

   DOW JONES NEWSWIRES 
 

Norwegian solar power company Renewable Energy Corp. ASA (REC.OS) Tuesday announced it will reduce production as a result of market conditions and said it will lay off 500 workers temporarily as it expects the operating result for the second quarter to be well below those for the previous quarter.

MAIN FACTS:

-The firm intends to reduce production of multicrystalline wafers, solar cells and modules from 1 July 2011.

-REC plans to halt production at its oldest wafer plants at Heroya in Norway as well as its solar cell plant in Narvik, Norway.

-REC said the production halt will cut Norway's wafer capacity by about 30% in the third quarter.

-Its polysilicon production in the U.S. and wafer, cell and module production in Singapore will not be affected.

-The firm said it has yet to decide on appropriate production levels going forward and doesn't mention the expected effect of the reduction on the 2011 annual production volumes.

-At 1014 GMT shares traded 9% lower at NOK13.78.

-By Katarina Gustafsson, Dow Jones Newswires [phone]; [e-mail]