Remuneration Information • Mar 27, 2025
Remuneration Information
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ARTBOX REPORT TEMPLATE ALL RIGHTS RESERVED © ARTBOX AS

REC Silicon is a global leader in silane-based, high-purity silicon materials.
With two U.S.-based manufacturing facilities and sales support offices in both Asia and the United States, REC Silicon is leading energy and technology providers worldwide in shaping the future withadvanced silicon materials.

| 1. | Purpose of the report | 4 |
|---|---|---|
| 2. | Remuneration of Group Management | 6 |
| 3. | Share based, Long Term Incentive Program, LTIP | 9 |
| 4. | Remuneration of the Board of Directors | 11 |
| 5. | Compliance with Remuneration Guidelines | 11 |
| 6. | Derogations and Deviations from Remuneration Guidelines | 11 |
| 7. | Comparative information on the change of remunerations and Company performance |
12 |
| 8. | Information on the shareholder vote | 14 |
| 9. | Statement by the board | 14 |
| Independent auditor's assurance report on report on salary and other remuneration to directors |
15 |
This report on salaries and other remuneration to leading personnel (the "report") of REC Silicon ASA (the "Company") is based on the guidelines for the determination of salaries and other remuneration of leading personnel in the Company which were approved by the Company's general meeting on May 11, 2021. ("Guidelines").
This report is based on the requirements set out in the Norwegian Public Limited Companies Act of June 13, 1997 no. 45 (the "Companies Act") section 6-16a and 6-16b, as well as Regulation on guidelines and report on remuneration for leading personnel of December 11, 2020 No. 2730 (the "Regulation"). The report is formulated in line with the European Commission's template for remuneration reports.
The information included in the report is derived from the audited annual report of REC Silicon ASA for the financial year 2024. The report also contains additional information to meet the requirements of the Regulation, and to explain Board and Group Management remuneration. All amounts are in USD unless otherwise specified.
Information required by the Norwegian Act relating to Annual Accounts of July 17, 1998 no. 56 ("Accounting Act") section 7-31 b is included in the Company's annual report for 2021.
From its two US-based manufacturing facilities in Moses Lake, Washington and Butte, Montana, REC Silicon is a leading producer of silane-based high purity silicon materials and is shaping the future with advanced materials.
The core product for REC Silicon's activities is silane gas (SiH4). It is the simplest and purest form of silicon and is used as a stand-alone product for use in semiconductors, flat panel displays, solar panels and as material for silicon anode batteries. It is also refined into specialty gases for advanced uses in the semiconductor industry.
Growth trends within digitalization, renewable energy and electric mobility have placed REC Silicon in a position to seize upon market opportunities for the Company's signature silane gas-based operations.
On December 30, 2024, REC Silicon discontinued production of granular polysilicon at its Moses Lake facility. Additionally, during 2024, the Company shut down polysilicon production at its Butte Montana facility.
Total granular polysilicon production was 4,037MT during 2024. However, none of the production reached the purity levels required by its offtake contract with QCells. Total Siemens polysilicon production decreased by 419MT (-38.1 percent) to 682MT in 2024, compared to 1,101MT in 2023.
Total Siemens polysilicon inventories decreased by 233MT in 2024.
Total loaded silicon gas production was 2,639MT in 2024 which was a decrease of 351MT from 2,990 MT in 2023. Total silicon gas inventories increased by 78MT during 2024.

Total revenues from continuing operations for both 2024 and 2023 were USD 140.8 million.
Total Siemens polysilicon sales increased by 169MT to 914MT in 2024 compared to 745MT in 2023. Total silicon gas sales decreased by 514 to 2,561MT in 2024 compared to 3,075MT in 2023.
EBITDA from continuing operations for 2024 was a loss of USD 17.9 million, compared to an EBITDA loss of USD 15.7 million in 2023. The decrease in EBITDA compared to 2023 is primarily the result of lower EBITDA from the Semiconductor Materials segment. EBITDA contributed by the Semiconductor Materials segment decreased by USD 1.1 million to USD 12.9 million in 2024, primarily due to decreased silicon gas sales.
Earnings per share from continuing operations

In Other and Eliminations, net operating costs increased by USD 1.1 million due to increased activities in 2024 compared to 2023.
Earnings Before Financial Items and Income Taxes (EBIT) from continuing operations for 2024 was a loss of USD 29.1 million. This represents a decreased loss compared to an EBIT loss of USD 35.5 million in 2023.
Loss from total operations was USD 457.9 million in 2024; this compares to a gain from total operations of USD 30.5 million in 2023. The loss for 2024 is driven by a USD 402.9 million loss from discontinued operations for the Solar Materials segment. The loss re-presented from discontinued operations was USD 65.4 million for 2023. The total gain in 2023 was primarily the result of the sale of the Yulin JV which resulted in a gain of USD 135.5 million.
Members of Group Management are those that lead the business and make operational decisions. The company considers the positions of Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Strategy Officer (CSO) as leading personnel for the company.
The remuneration to group management covered by the guidelines may consist of
Remuneration packages for the Group Management comprise a base salary, a short-term cash-based incentive or "STIP", a long-term share-based incentive, "LTIP", a pension contribution and other benefits. The fixed remuneration enables the executives to take decisions with a long-term perspective in mind without undue considerations for short- or long-term incentives. The variable remuneration is designed to promote performance in line with the Company's strategy and to further align the interests of the Group Management and shareholders.
Company guidelines do not include a right to reclaim variable compensation. Therefore, there is no claw-back of compensation provided under the Company's variable compensation plans.
The Company's bonus program includes the requirement that the employee must be employed by the Company at the date of the bonus payout date.
Short term incentive included operational and financial goals.
Goals were set forth for 2024 included the following:
Mr. Levens was eligible for a maximum bonus of 50 percent of base salary. His bonus was set by the above.
Mr. Yun did not have a maximum bonus as a percentage of base salary. His bonus was set by the above.
Mr. Jung did not have a maximum bonus as a percentage of base salary. His bonus was set by the above.
The table below shows the 2024 targets and results for shortterm variable compensation plans for group management. Targets for 2024 were established by the Board of Directors to incentivize and reward the achievement of Company goals related to financial performance and the strategic direction of the Company.
The remuneration of executives during 2024 was governed by the Guidelines for Salary and other Remuneration to Leading Personnel (the "Guidelines") in REC Silicon ASA, which was adopted at the Annual General Meeting in 2021.
All remuneration in 2024 to Group Management (the "Management") was in line with the approved Guidelines. Total remuneration of Management amounted to USD 1,429,057 in 2024 as compared with USD 1,551,077 in 2023. The remuneration is aligned with benchmark salary data for like positions within the industry.The total remuneration for Chief Executive Officer ("CEO") in 2024 amounted to USD \$784,111 (USD 885,221 for 2023). Of the total CEO remuneration, USD 876,517 is fixed and negative USD 92,906 is variable remuneration. Included in variable remuneration for both years are negative amounts for the share option plan. Amounts were negative due to the declining share price of REC Silicon.
| Performance Targets | |||||
|---|---|---|---|---|---|
| Name and position | Performance Criteria | Performance Criterial Weighting |
Minimum Target | Actual Performance | |
| Kurt Levens | Financial and Operational | 10% | EBITDA Target Consolidated | 0.0% | |
| CEO | 10% | Long-term contract with anode material manufacturer | 0.0% | ||
| 10% | EBITDA Target Solar Materiasl segment | 0.0% | |||
| Jeong Ryul Yun | 15% | Granular polysilicon production volume | 0.0% | ||
| CFO | 10% | Granular polysilicon production prime quality level | 0.0% | ||
| 5% | Moses Lake employee turnover | 0.0% | |||
| Dongjin Jung | 5% | Moses Lake inventory turnover | 0.0% | ||
| CSO | 10% | EBITDA Target Semiconductor Materials segment | 0.0% | ||
| 10% | Silicon gas sales volume | 0.0% | |||
| 10% | Silicon gas average sales price | 12.5% | |||
| 5% | Butte inventory turnover | 0.0% |
The criteria for average sales price of silicon gas was met, however no bonus was approved for Group Management.
2024
| Fixed remuneration | Variable remuneration | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Name and position (Amounts in USD) | Base Salary | Stipend | Pension Expense | Fringe benefits | One-year variable Earned |
Multi-year variable Earned |
Total Remuneration |
Proportion of fixed and variable remuneration |
|
| Kurt Levens, CEO | 765,000 | 0 | 34,500 | 77,517 | 0 | -92,906 | 784,111 | 111.8% | -11.8% |
| Jack Yun,CFO | 156,020 | 0 | 0 | 256,280 | 0 | 0 | 412,300 | 100.0% | 0.0% |
| Dylan Jung, CSO | 88,683 | 0 | 0 | 143,962 | 0 | 0 | 232,645 | 100.0% | 0.0% |
| Totals | 1,009,703 | 0 | 34,500 | 477,760 | 0 | -92,906 | 1,429,057 | 106.5% | -6.5% |
| 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Fixed remuneration | Variable remuneration | |||||||||
| Name and position (Amounts in USD) | Base Salary | Stipend | Pension Expense | Fringe benefits | One-year variable Earned |
Multi-year variable Earned |
Total Remuneration |
Proportion of fixed and variable remuneration |
||
| Kurt Levens, CEO | 643,653 | 92,308 | 33,000 | 11,514 | 165,237 | -60,491 | 885,221 | 88.2% | 11.8% | |
| Jack Yun,CFO | 196,402 | 0 | 0 | 163,591 | 84,472 | 0 | 444,465 | 81.0% | 19.0% | |
| Dylan Jung, CSO | 92,304 | 0 | 0 | 103,859 | 25,227 | 0 | 221,391 | 88.6% | 11.4% | |
| Totals | 932,360 | 92,308 | 33,000 | 278,964 | 274,936 | -60,491 | 1,551,077 | 86.2% | 13.8% |
The share-based incentive program is intended to award and incentivize outstanding performance by eligible employees and to attract and retain strong talent in business-critical functions.
The synthetic options under this program entitle the holder to receive a cash payment equivalent to the difference between a specific number of options multiplied by the strike price for such options and the same number of REC shares multiplied by the weighted average market price of REC shares on the disbursement dates. The options entitlement does not need to be exercised by any action by the eligible employee and will be automatically disbursed by REC following the applicable disbursement date for such year. The share options granted to eligible employees can be cancelled in their entirety if the eligible employee ceases to be employed by REC Silicon. Employees who retire retain share options granted under the plan.
The tables below contain information on the number of shares and share options granted or offered to group management and information on the number of share options granted or offered for the reported financial year respectively. Kurt Levens had previously been granted options while in his role as senior vice president of Butte operations. He was not granted any options in 2024 or 2023. In the tables, the main conditions for the exercise of the rights including the exercise price and date and any change thereof appear. The cash payment is limited to a maximum amount in each calendar year. The maximum amount is each employee's base salary effective January 1 in the year of the relevant disbursement date.
The value of unvested options is calculated using the Black Scholes option pricing model and may not match actual payments made depending upon the market value of the Company's stock on the exercise date. During 2024, members of group management were paid USD 13,708 for options granted in 2020 (see table below).
There were no shares granted or offered during 2024.
| Kurt Levens, CEO | Information regarding the reported financial year | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening balance Shares previously awarded |
During the year | Closing balance | |||||||||||
| Specification of plan | Plan period | Award date | Vesting Dates | End of holding period | Shares awarded/ (expired) |
Shares exercised / Settled in Cash |
Shares subject to a performance condition |
Shares awarded and unexer cised at year end subject to a holding period / Value |
|||||
| 2021 Plan - Strike Price NOK 17.5 | 2021 - June 30 2026 | May 11, 2021 | June 30, 2024 33.33% | July 1, 2026 | 133,279 | 0 | 0 | 133,279 | 133,279 | ||||
| June 30, 2025 33.33% | \$0 | \$4,572 | |||||||||||
| June 30, 2026 33.33% | |||||||||||||
| 2020 Plan - Strike Price NOK 3.5 | 2020 - June 30 2025 | May 12, 2020 | June 30, 2023 33.33% | July 1, 2025 | 81,068 | 0 | 40,534 | 40,534 | 40,534 | ||||
| June 30, 2024 33.33% | \$13,708 | \$5,490 | |||||||||||
| June 30, 2025 33.33% | |||||||||||||
| 2019 Plan - Strike Price NOK 8.1 | 2019 - June 30 2024 | May 9, 2019 | June 30, 2022 33.33% | July 1, 2024 | 41,266 | -41,266 | 0 | 0 | 0 | ||||
| June 30, 2023 33.33% | \$0 | \$0 | |||||||||||
| June 30, 2024 33.33% | |||||||||||||
| Total Shares | 255,613 | -41,266 | 40,534 | 173,813 | 173,813 | ||||||||
| Total USD | \$116,675 | \$13,708 | \$10,062 | ||||||||||
| Information regarding the reported financial year | ||||||
|---|---|---|---|---|---|---|
| Opening balance Shares previously awarded |
During the year | Closing balance | ||||
| Shares awarded/ (expired) |
Shares exercised / Settled in Cash |
Shares subject to a performance condition |
Shares awarded and unexercised at year end subject to a holding period / Value |
|||
| Kurt Levens | Shares | 255 613 | -41 266 | 40 534 | 173 813 | 173 813 |
| USD | \$13 708 | \$10 062 | ||||
| Jack Yun | Shares | 0 | 0 | 0 | 0 | 0 |
| USD | ||||||
| Dylan Jung | Shares | 0 | 0 | 0 | 0 | 0 |
| USD | ||||||
| Total Shares | 255 613 | -41 266 | 40 534 | 173 813 | 173 813 | |
| Total USD | \$116 675 | \$13 708 | \$10 062 | |||
Each year, the nomination committee proposes fees for the Chairmen of the Board of Directors and members of the Board of Directors. There is no additional compensation for Board members who serve on the compensation or the audit committees. Amounts are fixed in NOK. At the Annual General Meeting held on May 14, 2024, board fees were set until the AGM of 2025. The remuneration shall be:
Chair of the board NOK 0 Deputy chair NOK 0 Other Board members NOK 925,000
The table below shows remuneration paid to board members in 2024.
| USD | Member at December 31, 2024 |
Board compensation |
|---|---|---|
| Tae Won Jun - Chairman of the board | Yes | 0 |
| Jooyong Chung - Deputy chair | Yes | 0 |
| Renate Oberhoffer-Fritz | Yes | 86,116 |
| Vivian Bertseka | Yes | 87,569 |
| Robert Neuhauser | Yes | 52,698 |
| Roberta Benedetti | No | 32,216 |
| Total 2024 | 258,600 |
The remuneration of the Board and key group management complies with the Remuneration Guidelines adopted by the Annual General Meeting on May 11, 2021.
The Guidelines were approved by the Company's Annual General Meeting on May 11, 2021, and as of the date of this report no changes to the Guidelines have been proposed.
The table below contains information on the annual amount and change of remuneration of each individual member of group management compared to the prior year. Additionally, the performance of the Company and average remuneration on a full-time equivalent basis of employees of the Company over the current plus five most recent years is presented.
| USD | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Kurt Levens (CEO) | NA | NA | NA | 232,890 | 885,221 | 784,111 |
| Change from prior year | NA | 652,331 | -101,110 | |||
| Percent change from prior year | NA | 280.1% | -11.4% | |||
| Jack Yun (CFO) | NA | NA | NA | 133,798 | 444,465 | 412,300 |
| Change from prior year | NA | 310,667 | -32,165 | |||
| Percent change from prior year | NA | 232.2% | -7.2% | |||
| Dylan Jung (CSO) | NA | NA | NA | 34,511 | 221,391 | 232,645 |
| Change from prior year | NA | 186,879 | 11,255 | |||
| Percent change from prior year | NA | 541.5% | 5.1% | |||
| Douglas Moore (Interim CFO) | NA | NA | 15,790 | 193,964 | NA | NA |
| Change from prior year | NA | 178,173 | NA | NA | ||
| Percent change from prior year | NA | 1128.4% | NA | NA | ||
| James A. May II (CFO/Interim CEO) | 301,637 | 515,902 | 462,704 | 947,859 | NA | NA |
| Change from prior year | 10,198 | 214,265 | -53,199 | 485,156 | NA | NA |
| Percent change from prior year | 3.5% | 71.0% | -10.3% | 104.9% | NA | NA |
| Tore Torvund (CEO) | 991,544 | 1,955,838 | 1,716,032 | NA | NA | NA |
| Change from prior year | 41,525 | 964,295 | -239,806 | NA | NA | NA |
| Percent change from prior year | 4.4% | 97.3% | -12.3% | NA | NA | NA |
| Total Group Management | 1,293,181 | 2,471,741 | 2,194,526 | 1,543,023 | 1,551,077 | 1,429,057 |
| Change from prior year | 51,723 | 1,178,560 | -277,214 | -651,504 | 8,054 | -122,020 |
| Percent change from prior year | 4.2% | 91.1% | -11.2% | -29.7% | 0.5% | -7.9% |
| Average remuneration on a full-time equivalent basis of employees (excluding group management) |
|---|
| ------------------------------------------------------------------------------------------------ |
| USD | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Employees of the Group | 129,277 | 134,008 | 141,087 | 137,661 | 158,626 | 166,351 |
| Percent change from prior year | -2.2% | 3.7% | 5.3% | -2.4% | 15.2% | 4.9% |
| Average number of employees | 338 | 275 | 280 | 309 | 429 | 477 |
| Group Revenues | 160.2 | 122.1 | 143.2 | 147.8 | 140.8 | 140.8 |
| Group EBITDA | -12.9 | 23.8 | 7.7 | -34.9 | -15.7 | -17.9 |
| Earnings per share from continuing | ||||||
| operations | -0.47 | -0.16 | -0.12 | -0.21 | 0.23 | -0.13 |
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | Amount | Change % | Amount | Change % | Amount | Change % | Amount | Change % | Amount | Change % | Amount | Change % |
| Tae Won Jun | NA | NA | NA | 0 | 0 | 0 | ||||||
| Jooyong Chung | NA | NA | NA | NA | NA | 0 | ||||||
| Renate Oberhoffer-Fritz | NA | NA | NA | 48,054 | NA | 86,647 | 80.3% | 86,116 | -0.6% | |||
| Vivian Bertseka | NA | NA | NA | NA | 88,559 | NA | 87,569 | -1.1% | ||||
| Robert Neuhauser | NA | NA | NA | NA | NA | 32,216 | NA | |||||
| Roberta Benedetti | NA | NA | NA | NA | 86,055 | NA | 52,698 | -38.8% | ||||
| Dong Kwan Kim | NA | NA | NA | 0 | 0 | NA | ||||||
| Koo Yung Lee | NA | NA | NA | 0 | NA | NA | ||||||
| Maeng Yoon Kim | NA | NA | NA | 0 | NA | NA | ||||||
| Seung Deok Park | NA | NA | NA | 0 | NA | NA | ||||||
| Annette Malm Justad | NA | 45,005 | NA | 50,393 | 12.0% | 15,585 | -69.1% | NA | NA | |||
| Audun Stensvold | NA | 25,203 | NA | 39,006 | 54.8% | 12,988 | -66.7% | NA | NA | |||
| Heike Heiligtag | NA | NA | NA | 24,225 | NA | NA | NA | |||||
| Kjell Inge Røkke | NA | NA | 62,507 | NA | NA | NA | NA | |||||
| Lene Landøy | NA | NA | 35,857 | NA | NA | NA | NA | |||||
| Jens Ulltveit-Moe | 59,949 | -4.7% | 56,492 | -5.8% | NA | NA | NA | NA | ||||
| Espen Klitzing | 45,675 | 3.7% | 64,502 | 41.2% | 6,784 | -89.5% | NA | NA | NA | |||
| Ragnhild Wiborg | 41,679 | -5.3% | 35,860 | -14.0% | NA | NA | NA | NA | ||||
| Inger Berg Ørstavik | 41,679 | -5.3% | 61,063 | 46.5% | 6,784 | -88.9% | NA | NA | NA | |||
| Terje Osmundsen | 41,679 | -5.3% | NA | NA | NA | NA | NA | |||||
| Total Board of Directors | 230,660 | -3.5% | 288,124 | 24.9% | 201,330 | -30.1% | 100,852 | -49.9% | 261,261 | 159.1% | 258,600 | -1.0% |
Pursuant to the Companies Act Section 6-16 b (3), this report shall include an explanation on how the result of the general meeting's advisory vote over the report on salary and other remuneration to leading personnel for the previous year has been regarded. On May 14, 2024, the following resolution was passed. "The report for salary and other remuneration of the executive management are approved."
The Board of Directors of REC Silicon has today considered and approved the remuneration report for REC Silicon ASA for the year ended December 31, 2024. The remuneration report has been prepared in accordance with Section 6-16 b of the Public Limited Liability Companies Act and the regulations pursuant to this Act.
The remuneration report will be presented to the Annual General Meeting on May 8, 2025 for an advisory vote.
Tae Won Jun Chairman of the Board Jooyong Chung Deputy Chair
Vivian Bertseka Member of the Board
Robert Neuhauser Member of the Board Dr. Renate Oberhoffer-Fritz Member of the Board
William K. Levens President and CEO
To the General Meeting of Rec Silicon ASA
INDEPENDENT AUDITOR'S ASSURANCE REPORT ON REPORT ON SALARY AND OTHER REMUNERATION TO DIRECTORS
We have performed an assurance engagement to obtain reasonable assurance that REC Silicon ASA's report on salary and other remuneration to directors (the remuneration report) for the financial year ended 31. December 2024 has been prepared in accordance with section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation.
In our opinion, the remuneration report has been prepared, in all material respects, in accordance with section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation.
The board of directors is responsible for the preparation of the remuneration report and that it contains the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation and for such internal control as the board of directors determines is necessary for the preparation of a remuneration report that is free from material misstatements, whether due to fraud or error.
We are independent of the company as required by laws and regulations and the International Ethics Standards Board for Accountants' Code of International Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. The firm applies International Standard on
Deloitte AS Dronning Eufemias gate 14 Postboks 221 Sentrum NO-0103 Oslo Norway
Tel: +47 23 27 90 00 Fax: +47 23 27 90 01 www.deloitte.no
Quality Management, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our responsibility is to express an opinion on whether the remuneration report contains the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation and that the information in the remuneration report is free from material misstatements. We conducted our work in accordance with the International Standard for Assurance Engagements (ISAE) 3000 – "Assurance engagements other than audits or reviews of historical financial information".
We obtained an understanding of the remuneration policy approved by the general meeting. Our procedures included obtaining an understanding of the internal control relevant to the preparation of the remuneration report in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. Further we performed procedures to ensure completeness and accuracy of the information provided in the remuneration report, including whether it contains the information required by the law and accompanying regulation. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Oslo, 24 March 2025 Deloitte AS
Espen Johansen State Authorised Public Accountant (This document is signed electronic)
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Lysaker Torg 5, 3 etg. PO Box 63 1324 Lysaker Norway
REC Silicon ASA is a leading producer of advanced silicon materials, supplying high-purity polysilicon and silicon gases to the solar and electronics industries worldwide. We combine nearly 40 years experience and best-in-class proprietary technology to deliver on customer expectations. Our two U.S. based plants have a combined production capacity of more than 30,000 MT of high purity silane gas. REC Silicon is headquartered in Lysaker, Norway and listed on the Oslo stock exchange under the ticker: RECSI.
Phone +47 407 24 086
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