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REC Annual Report 2011
8
LETTER
FROM
THE CEO
2011 has been a challenging year for
REC, our shareholders, employees and
customers. Overcapacity led to steep
price declines and margin pressure
across the value chain. However, the
lower prices are improving the
competitiveness of solar, and led to a
strong market growth in the second half
of 2011. Solar energy is now fast
approaching a cost level in line with
conventional sources of electricity in
the sun rich regions of the world.
Our operating results in 2011, weakened compared to 2010.
Sharp price declines for all products were partly offset by
increased sales of polysilicon and modules and cost reductions
across all business units. In addition, inventory write downs and
costs related shutdowns of production capacity in Norway
weakened our overall results.
The safety of our employees is a key priority, and we have worked
systematically to improve our safety performance over the last
few years. I am therefore very pleased to report that we have
reached world class safety performance, with a lost time injury
rate of 1.2 per million hours worked in 2011.