Renewable Energy Corporation - Crisis During 2011 and 2012

Crisis During 2011 and 2012

During 2011, RECs stock price has been constantly dropping and fallen to the lowest level (NOK 4.34) since the company became public. In addition due to the continued weak market conditions and prospects of significant negative cash flow, the board of directors announced in October that REC would permanently close down the production capacity at the oldest multicrystalline wafer plants at Herøya, the multicrystalline wafer plant in Glomfjord and the solar cell plant in Narvik. The remaining Norwegian plant, at Herøya, was closed down in 2012. Its wafer subsidiary, REC Wafer Norway AS, is planning to file for insolvency.