REC to close Glomfjord monocrystalline wafer plant.

Renewable Energy Corporation ASA (OSE: REC) said it has decided to permanently close down its operations in Glomfjord, Norway. Glomfjord is a village in, Nordland county with a large heavy industry concentration,. REC said it was staring at continued negative operating results from the 300 MW monocrystalline wafer plant

REC started manufacturing mono wafers in 2005. The technology is the oldest way to make solar photovoltaic panels and until only recently it was more efficient and higher priced than multi aka polycrystalline. The industry dynamic has shifted as the material used in making polycrystalline wafers has plummeted due to oversupply.

Glomfjord closure is expected shortly and some 200 employees will lose their jobs. Board approval was not unanimous as majority of the employee representatives voted against the decision. REC has already written down the book value of the assets. The closure leaves REC wafer unit with multicrystalline production sites in Herøya, Norway and Tuas, Singapore. The stock continued its recent retreat with another 5% slide.