Singapore-based solar manufacturer REC has closed its two polysilicon production facilities in Norway. The Singapore-based manufacturer ceased operations in Kristiansand and Porsgrunn due to the Norwegian production being financially unsustainable.
REC’s CEO, Jan Enno Bicker, highlighted the intense competition with Chinese companies benefiting from electricity prices as low as 0.40 NOK ($0.037) per kWh. According to the CEO’s statement, REC faced costs exceeding ten times that amount in Norway. The company’s activities in Norway have reportedly suffered losses amounting to 335 million NOK ($31.2 million). The closure is anticipated to impact approximately 250 workers.
The move follows the recent ceasing of other Norwegian solar producers, Norwegian Crystals and Norsun. Norwegian Crystals filed for insolvency in late August, while Norsun announced plans to establish a factory in the States. The challenges faced by solar manufacturers emphasize the impact of electricity prices on the competitiveness of the industry, particularly in comparison to Chinese counterparts benefitting from significantly lower energy costs.
REC has not provided additional comments on the situation.
Source: pv-magazine.com
