Evergreen Solar Inc., a manufacturer of String Ribbon solar power products, has entered into a frame agreement with Jiawei Solar (Wuhan) Co. and the Wuhan Donghu New Technology Development Zone Management Committee that calls for a significant expansion of String Ribbon wafer manufacturing in Wuhan, China.
Under the agreement, Evergreen Solar will manufacture String Ribbon wafers at a leased facility being built in Wuhan, China, on Jiawei's campus. Jiawei will process String Ribbon wafers into Evergreen Solar-branded panels on a subcontract basis. Evergreen Solar will reimburse Jiawei for its cell and panel conversion costs, plus a subcontractor fee. The actual price paid to Jiawei will be negotiated annually.
The Wuhan government will provide or coordinate with other Chinese governmental agencies various incentives, including guarantees necessary to obtain third-party bank or other financing, the companies add.
Initial capacity is expected to be approximately 100 MW, and the parties intend to expand production capacity to approximately 500 MW by 2012, the timing and extent of which will be determined in 2010.
The parties expect to finalize the terms of the manufacturing relationship over the next 90 days, including obtaining project financing and other approvals and permits, and plan to begin production in the second quarter of 2010.
SOURCE: Evergreen Solar
