Renewable Energy Corporation said that operating its 300MW monocrystalline wafer plant in Glomfjord, Norway, would continue to lose money despite cost reduction efforts and that it will therefore be closed permanently. The plant closure will affect 200 employees.

"Our organization in Glomfjord has demonstrated operational improvements and cost reductions that are impressive, but this has unfortunately not been sufficient to ensure profitability in a very challenging market environment. We are conscious of the impact the shutdown will have on the affected employees and the community of Glomfjord, and this is therefore not a decision we have taken with ease", said Ole Enger, president & CEO.

REC had been impacted by rapidly falling wafer ASPs in 2011 and weaker than expected demand as overcapacity in the market increased. The company had previously warned that retaining the wafer plant operations was in doubt.