Company Information for Renewable Energy Corporation

Company Statement

The REC Group is uniquely positioned in the solar energy industry as the company with the broadest presence across the value chain. REC is the world's largest producer of silicon materials for photovoltaic (PV) applications and multicrystalline wafers, as well as a significant producer of cells and modules.

Three divisions across the value chain
REC's business activities are organized in three divisions: REC Silicon, REC Wafer and REC Solar. REC Silicon produces silicon materials mainly for the PV industry, but also for a limited number of electronics customers; REC Wafer produces multi- and monocrystalline wafers for the PV industry, while REC Solar produces solar cells and solar modules.

Integrated advantages
The presence in all parts of the value chain of the photovoltaic industry is one of REC's key strengths. It provides in-depth industry insight at a point in time when the industry is still immature, which makes REC well- positioned to analyze and execute on strategic opportunities. It also enables REC to carry out joint technology development and further strengthen its leading technological position throughout the chain. Efficient collaboration across segments makes it possible to exploit operational synergies and apply consistent application of manufacturing principles. It also provides flexibility to grow where opportunity is greatest at any time, in a coordinated manner. Own production of polysilicon secures the growth potential of all REC businesses. This enhances other strengths, notably efficient and scalable operations with lean manufacturing and mass production concepts implemented throughout the group.

REC aims to play a leading role and be a key contributor in shaping the future of the solar energy industry. Our ambition is strong and profitable growth, at a pace at least in line with the development of the PV solar market. We will achieve this by further expanding capacity across all our businesses, while continuing to pursue ambitious technology development programs and cost-reduction initiatives.

Vision
To become the most cost-efficient solar energy company in the world, with a broad presence across the value chain.

Mission
To increase the global use of clean and renewable energy, thereby reducing the negative environmental impacts from traditional energy sources.

Strategy
The REC Group’s technology and supply position across the value chain, from silane to systems, constitutes the platform for REC's strategic ambitions. In all divisions, across the value chain, REC has a continuous focus on technological innovations, quality and streamlined, cost-conscious production as the means to realizing profitable growth.

Key facts
REC Group is one of the pioneers of the solar industry, serving the international market. Below are some key facts about REC.
Position and products
A solar energy specialist with a broad presence across the value chain
The world's largest producer of solar grade polysilicon
The world's largest producer of multicrystalline wafers
A significant producer of solar cells and modules

REC SUBSIDIARIES
REC Solar Grade Silicon
REC Advanced Silicon Materials
REC ScanWafer
REC SiTech
REC ScanCell
REC ScanModule
Solar Vision

Operations and Technology

REC Silicon
REC Silicon produces polysilicon and silane gas for the photovoltaic industry as well as for the electronics industry. 

During the last few years, polysilicon has been in short supply on the world market. Access to this strategic resource represents a competitive advantage for REC - being a wafer, cell and module manufacturer with its own silicon manufacturing capacity. This makes REC attractive as a strategic partner in joint ventures and other development projects.

REC Silicon operates two plants in the US, in Moses Lake, Washington and Butte, Montana.

REC Silicon has two core strategic objectives: Reducing production cost through process optimization and continuous improvement programs, and increasing capacity both through continuous de-bottlenecking of the existing plants as well as through a larger expansion with a basis in new, competitive production technologies.

As existing obligations to deliver electronic grade polysilicon are phased out over the coming years, the freed up capacity will gradually be converted to solar grade silicon production, facilitating further expansion in REC Wafer and REC Solar. 

REC Wafer
REC Wafer consists of two business units. REC ScanWafer is the world’s largest producer of multicrystalline silicon wafers to the solar industry from its two plants, one in Glomfjord and one at Herøya. REC SiTech in Glomfjord produces monocrystalline ingots which are processed into wafers for high-efficiency monocrystalline solar cells.

Although the REC Wafer plants in Glomfjord are separate, there is operational synergy between REC ScanWafer and REC SiTech.

REC Wafer strategy
REC Wafer intends to grow at least at the same rate as the PV market, while enhancing its position as a market leader and increasing its market share through the agressive growth of production and simultaneous advances in productivity.

Together with the other divisions of the REC Group, REC Wafer will continue to focus on measures that will reduce the cost-per-watt produced and make solar energy more competitive. This will entail increasing production volumes while continuously improving productivity. In the monocrystalline segment, REC Wafer’s strategy is to grow with large, key customers that have special requirements.

Multicrystalline wafers
REC Wafer is the world’s largest producer of multicrystalline silicon wafers to the solar industry. As a cost effective producer of the PV wafers, REC Wafer strives to make solar energy a viable and cost-efficient energy alternative.

In 2007, REC Wafer’s plants at Herøya and Glomfjord (both in Norway) produced multicrystalline wafers with an implied effect of approximately 468 MW. This is an increase in annual production volume of 61 percent from 2006. The increase is mainly due to the successful start-up of a second factory at Herøya.

Monocrystalline
REC Wafer is a supplier of monosilicon ingots to the solar energy industry from the REC SiTech plant in Glomfjord, Norway.

In 2007, production capacity in this area was approximately 38 MW. Positioned as a niche player in this market segment, REC Wafer provides monocrystalline wafers for high-efficiency cells.  The monocrystalline wafers produced by REC Wafer are specialized, with higher efficiency than mainstream monocrystalline wafers.

There are strong synergies between multi- and monocrystalline wafers in technology and product development. 

REC Solar
REC Solar manufactures solar cells at its plant in Narvik (Norway) and solar modules at its facility in Glava (Sweden). In addition, the division is engaged in a small residential systems installation business in South Africa. 

REC Solar produces solar cells and modules from PV wafers mainly supplied by REC Wafer. The solar modules are sold to distributors, project developers and system intergrators in the international PV market. REC Solar started production in 2003, and has since experienced strong growth and industrial development.

REC Solar production capacity by year-end 2007 was about 135 MW for cells, and 100 MW for modules. REC Solar is now among the fastest-growing cell and module companies in Europe, with a growth of 170 percent production capacity for cells and 120 percent production capacity for modules  between year-end 2006 till year-end 2007.

Solar Vision (PTY) Ltd. is part of REC Solar and is a small operation with 15 employees, with a governmental franchise to install 50 000 solar home systems in South Africa. Currently, Solar Vision supplies 10 000 homes with electricity.

REC Solar strategy
Continued expansion is strengthening REC Solar’s cost position and increasing market share. Through internal technology development and through partners, REC Solar is innovating processes and products, and continuously strengthening the competitive position and expanding the technology platform for long term success. Market presence is expanded beyond Europe, as production capacity is built up. REC Solar enjoys a high demand from a large number of customers, far beyond its current production capacity. Wafer supply from REC Wafer allows REC Solar to optimize both production and expansions, and thus minimize costs.  REC Solar will also cooperate closely with the other divisions in the REC Group to realize innovations across the entire value chain.

Cells
REC Solar is producing high quality and high efficiency multicrystalline solar cells. The solar cells are specifically designed and tested in order to produce the maximum power output even under weak or diffuse light conditions.

Modules
REC Solar is producing high quality multicrystalline solar modules for the European market. The focus on quality and lean production has made the us a significant European module supplier in record time.

Solar Vision
Solar Vision (PTY) Ltd. was established in 1999, to pursue specific projects to install and maintain solar home systems (“SHS”) in developing countries. These projects benefited from the availability of attractive Norwegian government support programs and a profitable entry into the PV systems installation market. Solar Vision (PTY) Ltd is a wholly owned subsidiary of REC.


  

Geographical Spread

Locations

Headquarters: Oslo - Norway
Polysilicon: Moses Lake, Washington and Butte, Montana - USA
Wafers: Glomfjord and Herøya - Norway
Cells: Narvik - Norway
Modules: Glava - Sweden

Markets

The international solar energy market, primarily continental Europe, the USA and Asia.

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