Basic HTML Version
REC Annual Report 2011
24
The development in the selling prices for REC’s solar grade polysilicon,
wafers and modules are generally expected to follow the market price
fluctuations.
REC’s 2012 priorities
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 will be completed.
Investments will be made in implementation of technology to improve
product performance and reliability. Finally REC will build brand identity
and strengthen the market organization, both in Europe, Asia and the US.
Production targets
The full year 2012 production targets as well as the actual 2011
production figures are summarized in a separate table.
SEGMENT
PRODUCT
2011 ACTUAL
2012 TARGET
REC Silicon
Polysilicon
19 050 MT
~ 20 500 MT
RECWafer
Wafers
1 074 MW
NA
REC Solar
Modules
699 MW
~ 750 MW
2012 polysilicon production is expected to increase through continued
optimization of the production facilities.
The softness in the silane gasmarket continues as themajor endmarkets
including displays, semiconductors and PVall experienceweakness due to
themacroeconomic environment. RECwill be aggressive and targets to
increasemarket share in the silane gasmarket in 2012.
No production guidance is provided for RECWafer due to significant
uncertainty related to future operations.
All production targets are subject to changes in the market conditions
and operations.
Cost targets
REC Silicon targets to reduce FBR cash production cost by another ten
percent in 2012, with expected cash cost belowUSD 13 per kg in the
fourth quarter 2012. Cost reductions is expected to be achieved
through more stable operations, increased production volume, reduced
cost of rawmaterials as well as reduced overhead costs. In 2012 REC
expects about two thirds of its total polysilicon production to be based
on the FBR process.
REC Solar targets to reduce the production cost by another 30 percent
in 2012 to 70 Eurocents per watt in the fourth quarter 2012. The cost
reductions are expected to be achieved through implementation of new
technologies to increase average cell efficiency to 18 percent, strategic
sourcing with reduced cost and consumption of polysilicon, other
materials and consumables, improved operational performance,
debottlenecking and higher equipment availability as well as reduced
fixed costs and economies of scale in support functions.
Report from the Board of Directors
Sandvika, March 20, 2012
Bjørn M. Wiggen
Chairman of the Board
Hilde Myrberg
Member of the Board
Heléne Vibbleus Bergquist
Member of the Board
Hans Ødegård
Member of the Board
Tore Schiøtz
Member of the Board
Mimi K. Berdal
Member of the Board
Odd Christopher Hansen
Member of the Board
Rolf B. Nilsen
Member of the Board
Svein Tore Holsether
Member of the Board
Bernt Reitan
Member of the Board
Tommy Kristensen
Member of the Board
Silje Johnsen
Member of the Board
Ole Enger
President and CEO