Renewable Energy Corp to Close-down its Glava Solar Plant

Renewable Energy Corp. ASA, a Norwegian company engaged in the manufacture of solar power products, has declared its intention to close down its Glava Sweden plant with a production capability of 150 MW as a cost cutting measure.

The production facility located in the western parts of Vaernkabd Sweden has around 300 employees on role and the company is planning to assist them in finding new positions. The company has announced the continuation of its REC SCanModule AB till the end of the year before closing the factory. According to a factory release all the product warranties issued for the products purchased will continue to carry the valldity. The company is planning to make a proviso for 104 million kronor ($15 million) for continuing the reorganization work before the closure. The work includes making arrangements for termination payments and fulfilling the terms of other contracts. According to REC the earnings of the plant before apportioning for taxes, interests and paying offs are expected to be zero during the last part of the year.

John Andersen, Chief Operating Officer and Executive Vice President, of the company said that the financial results of the plant continue to remain disappointing in spite of the best efforts from its Glava officials and he added that the plant has become too weak to fight for its survival for a long period.