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REC is Merger Candidate as Solar Takeovers Loom, CEO Says


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REC is Merger Candidate as Solar Takeovers Loom, CEO Says

Business

Category: Manufacturing

“We won’t be surprised if there are more mergers in the time ahead” and REC is involved in discussions with possible partners, Chief Executive Officer Ole Enger said in an interview in Oslo today after presenting REC’s third-quarter results.“When results are like now, you must always be open for solutions that can give better results.”

The Sandvika-based company posted net income of 408 million kroner ($71 million) in the period after the bankruptcy of its Norwegian wafer unit, with continuing operations yielding a loss of 452 million kroner. REC had warned last week its results would miss analyst estimates.

Just like European peers such as Solarworld AG (SWV), REC is struggling with low prices after Chinese competitors expanded as demand slowed. Prices for Polysilicon, the material used to build solar panels, fell 13 percent in the third quarter and module prices retreated 14 percent, Enger said today, calling current market conditions “unsustainable” with “all industry participants losing money.”

About 180 solar manufacturers will fail or get bought by 2015, Boston-based GTM Research said in a report last week. While half of those companies are based in the U.S., Canada and Europe, there are about 54 “solar zombies” in China operating with government support that will probably close or be bought, it said.

Source: Bloomberg News

Published: September 25, 2022