Scandinavian solar equipment firm Renewable Energy Corporation is to split off its solar panel operation and relocate from Norway in a bid to strengthen the company.
The company which has seen its share price collapse 98% since 2008, is looking to sell off its solar panel operation to existing shareholders.
The move would make its silicon unit a separate firm, with the new REC Solar company being based in Singapore and valued at £88million.
The new REC Solar would be launched debt free, with REC silicon retaining the current company’s debt of £186million. The existing company would, under the new structure, relocate to the USA, with the company’s presence in Scandinavia downsized significantly as a result.
“We recognize that it will be increasingly demanding to grow and maintain a leading position with a vertically integrated business model,” said REC president Ole Enger.
“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.”
The move comes as the solar equipment market in Europe continues to struggle, through a combination of economic downturn and Chinese overcapacity – the latter having sparked a trade dispute.
REC closed its production in Norway last year, focusing output in the US and Far East as a result.