REC Solar to use Elkem’s polysilicon as acquisition closes

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The acquisition of PV module manufacturer REC Solar was said to have been completed by Norway-based Elkem Group, owned by Chinese investment firm China National Bluestar Group. 

REC Solar ASA separately announced that as the deal had been ratified it would start winding-down procedures having secured payment of approximately NOK4.298 billion (US$584.2 million), equivalent to NOK107.45 per share. REC Solar ASA was previously publically listed in Norway.

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Steve O’Neil, REC’s new CEO who joined the company on March 25, 2015, said: “I am proud to join REC at such an exciting time. The combination of the two companies will provide a strong platform to further develop REC as a leading global provider of solar energy solutions. With predicted solar generation costs as low as 2-4 eurocents per kilowatt hour by 2050, solar is expected to be the world’s most common energy source. By this transaction, we will further boost our pole position in utilising this incredible potential.”

REC Solar also noted that it would be purchasing unspecified amounts of polysilicon from Elkem Solar Silicon in the future after evaluations and qualifications have been made in ingot production at its manufacturing facilities in Singapore. 

However, the company told PV Tech that it was still too early to say what the polysilicon quantities would be or the impact this may have of potentially reducing purchases of polysilicon from former sister company REC Silicon in the future. 

However, in the REC Solar statement it was made clear that the ambition of REC and Elkem was to boost their market position as an integrated PV player as well as supporting Elkem Solar Silicon re-entering the PV market having exited the sector several years ago. 

REC Solar has been capacity constrained in 2014, despite adding capacity and needs further capital allocation from Elkem to build further capacity. 

REC Silicon has yet to respond publically to the potential loss of orders and revenue from the Elkem acquisition of REC Solar. 

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