SINGAPORE: Norwegian firm, Renewable Energy Corporation (REC) ASA is building a solar panel manufacturing complex in Jurong - which will be one of the largest in the world. REC said it is pumping S$3.4 billion into the first phase alone.

The solar manufacturing plant will cover one square kilometre and will be one of the biggest in the world.

When running at full capacity by 2012, it will have a production capacity of 550 mega watts worth of cells, 740 mega watts of wafers and 590 mega watts of modules. The consolidated revenue is expected to hit S$2.9 billion.

Oyvind Hasaas, Senior Vice President, Site Operations, Renewable Energy Corporation ASA, said: "One of the main criteria to select Singapore was its highly competitive electronics industry. We feel that we have an attractive offer to the employees of the electronic industry to move now into the solar industry.

"We feel that Singapore is contributing with a highly skilled supplier network that we can tap into and we look forward to further co-operation with these companies."

The new facility will complement REC's manufacturing centre in Scandinavia, and will be 10 per cent cheaper to run than any of REC's existing plants.

REC said the decision on investing in the second phase could come next year.

Einar Kilde, Executive Vice President, Projects, Renewable Energy Corporation ASA, said: "The drivers here in Singapore will obviously be the cost of building... The good thing for Singapore is that we will use the contractors. We will have a team established and have the operational competence."

REC first announced its plans for the facility here in October last year. The project is expected to cost more than S$6 billion. - CNA/vm