REC ASA has signed a long-term multicrystalline silicon wafer supply deal with Korea’s LG Electronics starting in 2010 until 2014, worth US$340 million. The agreement is based on a take-or-pay contract with pre-determined prices and volumes for the entire contract period. REC expects the prices to reduce over the time of the contract and is in line with earlier signed contracts.
“We are happy to sign a new long-term contract with one of the leading electronics companies in the world. REC’s total contract portfolio, in excess of NOK 60 billion, provides a reasonable visibility on future revenues”, says Erik Thorsen, President & CEO.
“We are proud to include LG Electronics to our customer portfolio. This provides us with an exciting opportunity to learn from their extensive mass production and product development capabilities”, says Ingelise Arntsen EVP of REC Wafer.
According to the contract terms, REC will supply only limited amounts of wafers in 2010 but ramp throughout the remaining time of the agreement period. Included in the deal is the move to thinner wafers, though details were not provided.