Despite recent efforts to improve the the cost competitiveness of a fully-automated 150MW c-Si module assembly plant in Glava, Sweden, REC will wind-down and close its operations at REC ScanModule by the end of 2010. Åsmund Fodstad, Senior Vice President Sales & Marketing at REC Solar, told PV-Tech that the plant had been running at close to full capacity but due to its isolated position from other facilities within the group, it had struggled to be profitable.
REC said in a statement that the plant in Glava employed approximately 300 employees, who will be supported by the company in seeking employment elsewhere. REC expects to recognize restructuring costs of approximately SEK 104 million in the third quarter 2010, including termination of employment agreements and other contracts.
REC’s Executive Vice President & Group COO, John Andersen, Jr (right) said, “I would like to recognize the considerable efforts of the REC ScanModule team over the last quarters to improve its cost position. Unfortunately the financial performance of the plant has remained unsatisfactory, and despite the efforts of the Glava team the prospects for long-term competiveness of the plant are weak.”
With the ramp of its new integrated module assembly plant in Singapore underway, REC noted that module supply would be unaffected by the closure of the plant in Sweden. The company will be using outsourced, contract manufacturing for some of its module production requirements as well.
The operations of REC’s 180MW solar cell plant in Narvik, Norway, will also be unaffected by the announced closure of REC ScanModule, according to the company.