© REC Electronics Production | November 03, 2011

REC closes factories in Norway - 700 jobs could go

REC, Renewable Energy Corporation ASA, Norway, will close three factories in Norway due to weak market conditions the company announced in its Q3 financial report.
Continued weak market conditions was the basis for the companies initial decision to review operations and earlier this year Evertiq reported that they would cut back production for the same reason. REC's wafer-production declined by 39% from the last quarter.

The factories to be closed are: Herøy, Glomfjord and Narvik. Existing contracts that are not able to be fulfilled will be compensated, the company said. Added together, these factories account for 45% of wafer capacity produced by the company in Norway, and a certain amount of PV capacity. Up to 700 workers could lose their jobs.

The company's factories in Singapore and the United States will remain operational.

Earlier this year, when the decision was being considered, CEO Ole Enger said:

"This is an unfortunate but necessary step in the current market. We think about the consequences of potential closures for the employees and members of the local communities in Norway. It is therefore not a decision we take lightly. We are currently working hard on to once again become competitive in the Norwegian market".


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