Norway’s REC to halt 60% of Heroya wafer plant capacity

29 November 2011 10:05  [Source: ICIS news]

SINGAPORE (ICIS)--Norway’s Renewable Energy Corporation (REC) said on Tuesday it is planning to temporarily halt 60% of the capacity at its 650 megawatt (MW) multi-crystalline wafer facility at Heroya in Norway because of poor demand in the solar market.

The temporary shutdown is expected to last from 1 December this year to the first quarter of 2012, the polysilicon producer said in a statement.

“The debt crisis in Europe and the turmoil in the capital markets continue to have a severe negative impact on the demand in the solar market,” REC said.

The market prices of modules and wafers have dropped by 10% and 30% respectively since 1 October this year, while the prices of polysilicon have fallen by 35%, according to REC.

“REC is currently experiencing low visibility on sales volumes and inventories are increasing across all product areas,” the statement said.

“If the solar market is not improving, further adjustments of production levels will be made,” the firm said.

Compared to the third quarter of this year, lower sales prices and reduced sales volumes are expected to negatively affect REC’s financial results in the fourth quarter of 2011, REC said.

“In this very challenging market environment the solar industry is set for a phase of shake-out and consolidation over the next 1-2 years, said CEO Ole Enger.

“REC needs to adapt production to the prevailing market conditions,” Enger added.

Please visit the complete ICIS plants and projects database

By: Nurluqman Suratman

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly