CFO says Norwegian REC can no longer burn money - report

Oct 27, 2011 - The situation in Norway has been very weak and it was important to make a quick decision, Bjorn Brenna, CFO in Renewable Energy Corporation ASA (OSL:REC) said on Wednesday, after the Norwegian solar group announced partial closure of its domestic production.

"Our cost position in Singapore and in the USA is very good," he said in an interview for Norwegian news wire iMarkedet Xpress, adding it is important to not burn money in Norway when the market is weak.

He pointed that the company's polysilicone operations performed very well with margins over 50% in a very challenging market.

REC said yesterday in its third-quarter report it has decided to permanently shut down its domestic facilities, which have been closed over the past months. The move would affect some 700 employees and concerns the oldest wafer plants at Heroya, the wafer multi plant in Glomfjord and the solar cell plant in Narvik.

"We have announced previously a process with the employees about closure. As we saw no improvement on the market, we made the final decision for the shut-down in Heroya, Narvik and Glomfjord," Brenna explained.

The remaining plants must be cash-neutral through the fourth quarter in order to survive, Brenna said.

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