OSLO, Mar. 17 -- Renewable Energy Corp (REC.OL: Quote) (REC) said on Tuesday it would more than double its production of polysilicon to 17,000 tonnes in 2012 from 8,000 tonnes in 2009 as capacity increases at its plants in the United States.
Norway's REC, one of the world's biggest makers of solar energy equipment, repeated its financial outlook for the first quarter in presentation material from an analyst field trip to its polysilicon plant in Moses Lake, Washington.
"Market growth is expected to return in 2010 -- but overcapacity continues," REC said, adding solar equipment price pressures were easing relative to last year.
Solar energy companies have been hit by a lack of financing for new projects and a glut of panels. REC's fourth quarter weakened, missing analysts' forecasts.
REC said it expected overall revenue and growth in core profit for its silicon business in 2010.
"REC Silicon is well positioned in terms of cost, product quality and reputation, customer channels and stability of suppliers," REC said.
It added that REC Silicon had been awarded in January a $154.9 million tax credit under the Advanced Energy Manufacturing Tax Credit, part of a U.S. economic stimulus package.
Shares in REC closed up 8.7 percent at a month high. Their gains came before the company statement was released, a few minutes before the market closed.