REC has said that the plant will continue with the production of modules at a somewhat reduced capacity utilization until the end of this year. However, it has decided to initiate a process with the trade unions with the intention to discontinue production.
"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 competitiveness of the plant are weak," stated John Andersen, Jr., executive vice president and group COO.? ?
The corporation has said operations of its 180 MW solar cell plant in Narvik, Norway, will not be affected. It added that the solar cells produced there will be used in the manufacturing of its REC Peak Energy Modules, partly in REC's Singapore facility and partly through contract manufacturing arrangements. Consequently, it said it expects to maintain its current capabilities for supply of modules and at the same time improve its overall cost position.? ?
REC went on to say that all product warranties provided by REC ScanModule AB will remain intact.??
In a statement, it explained: All property, plant, and equipment in REC ScanModule were written down to zero in REC's financial statement for 2009. REC expects to recognize a provision for restructuring cost, currently estimated to approximately SEK 104 million in the third quarter 2010, including termination of employment agreements and other contracts. Furthermore, based on current estimates for operations, the EBITDA for REC's Glava plant is expected to be close to zero in the fourth quarter 2010.
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