Against all odds
A solar energy company located at the northern edge of Europe probably sounds like a contradiciton in terms to some, but REC's founder Alf Bjørseth saw that hydro power in abundance and a long tradition and competence within the metal industry field would support his business case. It started in 1993 with the idea that solar cells made from multicrystalline wafers would become the leading technology in an industry which was about to accelerate.
New technology replaces old industry
About the same time, a local ammoniac production facility in Glomfjord in northern Norway shut down, and Reidar Langmo went into partnership with Bjørseth to start the production of solar wafers at this site. The first wafer was produced in the summer of 1997, and the founders were in the plant washing the first wafers by hand. In 1999 the company, then called ScanWafer, signed large contracts with Mitsubishi Electric and Shell Solar, and all of a sudden wafer demand exceeded supply.
Expanding globally
The first expansion was due, and in 2001 the second plant in Glomfjord opened. ScanWafer was now the world's largest multicrystalline wafer producer.
The supply of the raw material - solar grade silicon - was plentiful and when the company invested in a the silicon production plant in Moses Lake in Washington,USA in 2002, many were surprised.
The third wafer plant factory opened in Herøya in 2003, and about this time the raw materials supply situation started to change, and while the rest of the industry screamed for solar grade silicon, REC's operation was secure. Simultaneously, the war in Iraq led to increaseing oil prices. The future looked bright, and REC had by then also opened a solar cell production facility in Narvik, Norway and a solar module production plant in Glava, Sweden.
Going public
The founder, Alf Bjørseth, pulled out in 2005, and left the control to Erik Thorsen. In May 2006, REC was listed on the Oslo Stock Exchange priced at NOK 55 billion. During Thorsen's reign the company expanded heavily, and was soon the world's largest integrated solar energy company.
Singapore
Profitable growth and cost reduction were at the forefront as REC planned further expansion and began exploring the possibilities of building a world-scale, integrated solar energy complex. After evaluating about 200 possible locations, REC decided on Singapore, and in June 2008 REC committed to investing NOK 13 billion (close to SGD 3 359 milion) building the Singapore wafer, cell and module plants in Tuas View.
Developing an industrial culture
Having expanded aggressively for a few years, the time had come to further develop a strong industrial culture, and Ole Enger came in as new President and CEO in April 2009.The major shift in the global eceonomy also affected REC in 2009, and in the summer REC raised NOK 4.5 billion in a fully subscribed rights issue to strengthen its financial flexibility in a tough market. |