REC has entered into a significant long-term agreement for supply of multi-crystalline silicon wafers to Gintech. Under the agreement, REC will until 2015 deliver wafers worth more than USD 600 million (~NOK 3 billion).
REC, the world’s largest manufacturer of multicrystalline silicon wafers, has signed a long-term agreement with Gintech Energy Corporation in Taiwan for the supply of wafers.
The agreement, which runs until 2015, is structured as a take-and-pay contract with pre-determined prices and volumes for the entire contract period. The contract has an approximate value of more than USD 600 million (~NOK 3 billion).
“The significant level of planned and ongoing capacity expansions gives us additional opportunities to secure new long term sales contracts that provide further visibility on future revenues and earnings. This agreement will also enable us to broaden our customer and market base even more”, says Erik Thorsen, President & CEO.
The deliveries will start with limited volumes in 2nd half of 2009 and increase over the contract period. Prices and other commercial terms are in line with contracts signed since 2006 and include the security of a bank guarantee covering a significant part of the contract volume. Prices are predetermined to go down over time and will be depending on customer’s ability to reduce wafer thickness. Contracts signed since 2006 now totals close to NOK 30 billion for the period 2007-2015.