Norway's REC to invest $2.5B in Singapore

Sandvika, Norway-based Renewable Energy Corp. announced plans to invest $2.5 billion in the first phase of an integrated manufacturing complex for the production of solar wafers, cells and modules in Singapore.

Renewable Energy Corp., or REC, unveiled the Singapore location last October, saying at the time that the total investment could exceed $4.6 billion within the next five years.

"This investment supports REC's position as a leading provider of highly competitive solar energy solutions, and in achieving our main corporate goals of reducing costs and securing profitable growth," said Erik Thorsen, president and CEO of REC.

"The project cost levels should enable us to compete profitably at grid-parity prices in several markets, which is essential in building a robust business case."

The company said the investment would be funded through operating cash flow and existing and new credit facilities.

REC expects to start production at the new plant in the first quarter of 2010, reaching full capacity of 740 megawatts of wafers, 550 MW of cells and 590 MW of modules before 2012.

REC said it has already secured a supply of polysilicon through its ongoing expansion in Moses Lake, Washington, and Butte, Montanta.

The company plans to make an investment decision for the next phase in 2009.

REC also announced that it would invest $77.1 million to upgrade and extend its existing production capacity in Heroya, Norway.