The Renewable Energy Corporation (REC) has terminated a long-term wafer sales contract with an unnamed customer. The Norweigan PV giant will receive USD$40 million in compensation, which will be paid out in Q3.
Between 2006 and 2008, REC signed a number of long-term take-or-pay wafer contracts, with the majority of these contracts supported by bank guarantees.
The contract termination comes less than a month after REC announced temporary shutdown of production capacity in Norway until the end of the year. The shutdowns represented approximately 45% of the wafer capacity in Norway, and included the oldest wafer plants at Herøya and the multi-wafer plant in Glomfjord.