Evergreen Solar Inc. has finalized its agreements with Jiawei Solarchina Co. Ltd. and the Wuhan Government's Hubei Science & Technology Investment Co. Ltd. (HSTIC). Under these agreements, Evergreen Solar will manufacture String Ribbon wafers at a leased facility being built by Jiawei in Wuhan, China, on Jiawei's campus.
Jiawei will convert the String Ribbon wafers into Evergreen Solar-branded panels on a contract manufacturing basis. Evergreen Solar will reimburse Jiawei for its cell and panel conversion costs, plus a contract manufacturing fee. The actual price paid to Jiawei will be negotiated annually.
Evergreen Solar will invest $17 million in cash and equipment in the Wuhan String Ribbon operation, the companies add. HSTIC will provide Evergreen Solar $33 million of 7.5% financing, which Evergreen Solar must repay no later than July 2014. Jiawei will make a similar investment for its cell and panel operations with the support of HSTIC.
Initial capacity will be approximately 100 MW. Factory construction has begun, and the parties expect that wafer, cell and panel production will begin in spring 2010.
SOURCE: Evergreen Solar
