Hanwha Group to Acquire REC Silicon for $89 Million

• Hanwha Group acquires REC Silicon for NOK 925 million, strengthening its position in the renewable energy sector and ensuring a stable supply chain for silicon-based technologies.

South Korea’s Hanwha Group has announced a full acquisition of REC Silicon ASA, a Norwegian silicon materials company, in a deal valued at NOK 925 million (USD 89 million/EUR 78.2 million). This acquisition aims to ensure the continued operation of REC Silicon, which has been facing financial difficulties.

The deal underscores Hanwha's strategic interest in expanding its footprint in the silicon materials sector. By acquiring REC Silicon, Hanwha seeks to bolster its capabilities and secure a stable supply chain in the renewable energy market, particularly in the production of solar panels and other silicon-based technologies.

How will Hanwha's acquisition of REC Silicon impact the renewable energy market?

• Strengthened Supply Chain: Hanwha's acquisition of REC Silicon will enhance its control over the supply chain for silicon materials, crucial for solar panel production, reducing dependency on external suppliers.
• Increased Production Capacity: The acquisition is likely to lead to increased production capacity for silicon materials, supporting the growing demand for solar energy solutions globally.
• Technological Advancements: Hanwha may leverage REC Silicon's expertise and technology to innovate and improve the efficiency and performance of its solar products.
• Market Competitiveness: By securing a stable supply of silicon, Hanwha can offer more competitive pricing and potentially capture a larger market share in the renewable energy sector.
• Job Creation and Economic Impact: The acquisition could lead to job creation and economic growth in regions where REC Silicon operates, contributing positively to local economies.
• Strategic Positioning: This move positions Hanwha as a more formidable player in the global renewable energy market, potentially influencing market dynamics and encouraging further consolidation in the industry.
• Enhanced Sustainability: By ensuring the continued operation of REC Silicon, Hanwha supports the sustainability of the silicon supply chain, which is vital for the long-term growth of the renewable energy sector.