Troubled REC SiIicon Gets Offer From Hanwha Corporation By Saur News Bureau/ Updated On Tue, Apr 29th, 2025 Highlights : The Korean origin Hanwha is the largest shareholder in Norwegian firm REC Silicon Norwegian silicon maker REC Silicon has received a lifeline after years of financial troubles, but not without buyout some controversy. The Korean Hanwha Corporation and Hanwha Solutions, the entities with the highest shareholding in REC Silicon, have offered to buy out all other shareholders at NOK2.2 (US$0.21) per share through a newly established company, Anchor AS. REC Silicon is headquartered in Lysaker, Norway and listed on the Oslo stock exchange. The REC board has unanimously recommended to take up the Hanwha offer, REC had reported Q4 results in February for CY2024, where it reported revenues from continuing operations of USD 29.7 compared to USD 32.8 million in the third quarter of 2024. The Company also reported an EBITDA loss from continuing operations of USD 5.3 compared to an EBITDA loss of USD 6.4 million in the prior quarter. The EBITDA figure for the third quarter has been re-presented as a result of the Company’s discontinuation of the solar materials segment. EBITDA for the total operations was negative USD 56.5 million during the quarter, compared with negative USD 42.7 million in the previous quarter. REC produces/d solar-grade polysilicon using the fluidised bed reactor (FBR) method, considered cheaper but at risk of lower quality output than the more widely used Siemens process. The firm had been struggling for a long time with long term deals thanks to intense Chinese competition, and a large deal that was dropped by Hanwha due to alleged quality issues. <a href='https://secure.meilleurmedia.com/www/delivery/ck.php?n=a85f64fd&cb=INSERT_RANDOM_NUMBER_HERE' target='_blank'><img src='https://secure.meilleurmedia.com/www/delivery/avw.php?zoneid=54&cb=INSERT_RANDOM_NUMBER_HERE&n=a85f64fd' border='0' alt='advertisement' /></a> The offer values REC Silicon at US$88.8 million based on over 420 million outstanding shares, with total debt close to $400 million. REC Silicon’s long term financial fragility led to the shut down of its US manufacturing plant in January this year. The closure was attributed to the falling through of a deal with Qcells, a Hanwha subsidiary in the US, that makes and sells modules. Incidentally, the deal cancellation was followed by a long term deal with any Korean firm, OCI Holdings. <a href='https://secure.meilleurmedia.com/www/delivery/ck.php?n=a23dad63&cb=INSERT_RANDOM_NUMBER_HERE' target='_blank'><img src='https://secure.meilleurmedia.com/www/delivery/avw.php?zoneid=17&source=https%3A%2F%2Fwww.saurenergy.com&cb=INSERT_RANDOM_NUMBER_HERE&n=a23dad63&ct0=INSERT_ENCODED_CLICKURL_HERE' border='0' alt='Advertisment' /></a> This had been followed by a $40 million loan from Hanwha to shut down the facility. Korea Firm OCI To Build 2 GW Cell Manufacturing Plant In US Also Read Hanwha signed a supply deal with Malaysian polysilicon producer OCI Holdings within days of terminating the REC Silicon deal. Polysilicon Market Bleeds Top 4 Chinese Manufacturers With Losses In H1 Also Read The deal value will surprise many, including firms seeking to enter polysilicon production, as projections have been way higher for setting up a viable polysilicon manufacturing facility, upwards of $200 million in fact. With REC Silicon’s facilities at Moses Lake and Butte producing electricity-grade silicon and silane gas as we write this, the offer from Hanwha seems even lower. Made worse by Hanwha being an interested party as a key buyer as well as owner. Polysilicon Maker REC Silicon In 10 year Deal With Hanwha In US For Supplies Also Read Tags: Buyout offer, Hanwha, International, OCI Holdings, Polysilicon manufacturing, REC Silicon
