Norway-based Renewable Energy Corporation (REC) will divide the company into two entities, launching the silicon and solar divisions as independent, listed companies.
“We recognize that it will be increasingly demanding to grow and maintain a leading position with a vertically integrated business model. By launching a pure play solar company and a pure play silicon company, both companies will be in a favorable position for attracting capital, and well equipped to streamline the market approach and stay in the forefront in terms of technology development,” said Ole Enger, CEO of REC in a statement.
Launching the separate entities will be done through a financial transaction where REC offers 100 percent of the shares in REC Solar to the existing REC shareholders. REC Solar will be positioned as a debt free solar panel supplier. The transaction is pending approval by the REC shareholders through an Extraordinary General Meeting and by the REC bondholders.
For REC’s network of partners and its wide range of stakeholders, the move to separate the silicon and the solar businesses will not impact the interaction with REC, as the two business segments both have complete, separate organizational set-ups, including operations, R&D and sales & marketing, says the company.
The REC brand and trademark will be owned by the new REC Solar company, headquartered in Singapore under CEO, Øyvind Hasaas, while the parent company and the associated silicon business will be rebranded in due time.
The current senior management of the solar and silicon segments will head up the new companies after a transition period. The current corporate headquarters in Sandvika, Norway, will after a transition period will be downsized significantly, with corporate functions and roles transferred to the new head offices in Singapore for the solar business and the US for the silicon business.