REC Signs US $340M Wafer Contract with LG

REC Wafer has signed a long-term agreement with LG Electronics Inc. in Korea for the supply of multi crystalline wafers. The agreement, which runs until 2014, is structured as a take-or-pay contract with pre-determined prices and volumes for the entire contract period. The contract has an estimated value of more than US $340 million.

“We are happy to sign a new long-term contract with one of the leading electronics companies in the world. REC’s total contract portfolio, in excess of NOK 60 billion [US $8.44 billion], provides a reasonable visibility on future revenues,” said Erik Thorsen, president and CEO of REC Group.

LG will start to receive limited volumes of wafers in 2010 and the amount delivered will increase over the contract period. Prices are in line with earlier signed contracts and are predetermined to go down over time also depending on customer’s ability to utilize thinner wafers. Other commercial terms also falls within the standard REC contract framework.

RenewableEnergyWorld.com talked with Asmund Fodstad from REC Group about the company’s new modules at last year’s Solar Power International trade show. To see this interview, play the video below.

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