Basic HTML Version
REC Annual Report 2011
12
REC’s business structure comprises the three business segments
REC Silicon, RECWafer, and REC Solar. Production was in 2011 carried
out in the following subsidiaries; REC Solar Grade Silicon LLC and
REC Advanced Silicon Materials LLC in the US, RECWafer Norway AS,
REC ScanCell AS in Norway (closed down at the end of 2011) and
RECWafer Pte Ltd, REC Cells Pte Ltd, and RECModules Pte Ltd in
Singapore. REC’s sales and marketing activities in modules, systems
integration and project development are handled by local subsidiaries
in Germany, Italy, France, Spain, the US and Singapore.
Mission and Vision – Smart Energy for a Cleaner Future
Global energy demand is expected to continue to increase over the
coming years, and the climate change problems are still escalating. The
world needs to promote sustainable alternatives to traditional energy
sources, as the UN expects a quadrupling of annual carbon emissions in
the 21st century unless active climate policies are quickly implemented.
REC believes reduced cost, attractive carbon footprint and declining
energy pay-back time will make solar energy an essential part of the
future global electricity generation mix.
The company’s mission statement “Smart Energy for a Cleaner Future”
signals REC’s commitment to play a leading role in the development of
a sustainable energy market, and REC’s vision is to become one of the
world’s leading providers of competitive solar energy solutions. To
realize this vision, REC will seek to advance the competitiveness of solar
energy and create value through innovation, operational excellence, and
industry-wide expertise.
Strategy
REC has over the last few years been through a phase of construction
and ramp up of significant new production capacity, mainly in the US
and in Singapore. In 2011, REC has focused on cost reductions, further
optimization of our assets and improved product quality.
For 2012, REC has defined the following key priorities: The focus on cash
flow and to maintain financial flexibility will continue. The restructuring
of production capacity in Norway is expected to be completed.
Investments are expected to be made in implementation of technology
to improve product performance and reliability. Finally REC will seek to
build brand identity and strengthen the market organization, both in
Europe, Asia and the US.
Market position
REC increased production and sales volumes for polysilicon and solar
modules in 2011, while wafer production and sales declined.
REC Silicon delivered silane gas and polysilicon to approximately 80
external customers in 2011. The top five external customers accounted
for approximately 38 percent of REC Silicon’s total sales revenue in
2011, compared to approximately 33 percent in 2010. Approximately
50 percent of the electronic and solar grade polysilicon sales volume in
2011 was sold to RECWafer and REC Solar, compared with 72 percent
in 2010. Geographically 88 percent of external sales revenues in
REC Silicon came fromAsia, five percent fromUSA while seven percent
came from the rest of the world. REC Silicon received the 2011 Solar
Industry Award for the Innovative REC proprietary Fluidized Bed Reactor
(FBR) process, which significantly reduces the energy required to
produce Solar Grade granular polysilicon marketed under the name
NextSi™.
In 2011 RECWafer delivered the majority of the wafer volume under
contracts to 11 external customers however some wafer volume,
off-spec material and certain by-products were sold to a number of
other customers in the spot market. The top five external customers
accounted for approximately 55 percent of the total sales revenue in
2011, compared to approximately 65 percent in 2010. Wafer sales to
REC companies represented approximately 10 percent of the total sales
The chart shows the principal legal structure of Renewable Energy Corporation ASA per December 31, 2011 and is not a complete representation of all the companies and ownership
structures in the Group. RECWafer Pte Ltd is managed together with the cell and module operations in Singapore and the financial results are reported as part of REC Solar.
Report from the Board of Directors
RECSilicon AS
100 percent
RECWafer Norway AS
100 percent
RECSolar AS
100 percent
RECSilicon Inc
100 percent
RECWafer Pte. Ltd.
100 percent
RECScanCell AS
100 percent
RECCells Pte. Ltd.
100 percent
RECModules Pte. Ltd.
100 percent
RECSolar Grade Silicon LLC
100 percent
RECAdvanced SiliconMaterials LLC
100 percent
RENEWABLE ENERGY CORPORATION ASA