Norway's REC Wafer (REC.OL), a leading manufacturer of multicrystalline silicon wafers, has signed a long-term agreement with LG Electronics Inc. (066570.KS) in Korea for the supply of multi crystalline wafers.
The agreement, which runs until 2014, is structured as a take-or-pay contract with pre-determined prices and volumes for the entire contract period. The contract has an estimated value of more than US$340 million.
"We are happy to sign a new long-term contract with one of the leading electronics companies in the world," says Erik Thorsen, President & CEO of REC.
The deliveries will start with limited volumes in 2010 and increase over the contract period. Prices are in line with earlier signed contracts and are predetermined to go down over time also depending on customer's ability to utilize thinner wafers.
